Benzinga·2025-06-16 15:21Core Viewpoint - Activist investor Barington Capital Group has acquired over 1% of Victoria's Secret stock and aims to increase its stake amid significant stock decline and shareholder dissatisfaction [1][4] Group 1: Shareholder Actions - Barington Capital is advocating for a board refresh, potentially replacing a majority or all members with independent directors [2] - The firm is urging Victoria's Secret to refocus on its core bras business to improve stock performance, believing the brand has untapped value, especially in its beauty segment [3] Group 2: Financial Performance - Victoria's Secret's market value has dropped to approximately $1.5 billion from $6.5 billion post-2021 split from Bath & Body Works [1] - The company reported first-quarter adjusted earnings per share of 9 cents and quarterly sales of $1.35 billion, which were in line with analyst expectations [5] - Fiscal year 2025 adjusted operating income guidance has been lowered to $270 million to $320 million from a previous forecast of $300 million to $350 million [6] Group 3: External Pressures - Australian billionaire Brett Blundy, holding nearly 13% of Victoria's Secret shares, has criticized board decisions and called for a board overhaul [4] - In response to shareholder pressure, the company implemented a "poison pill" shareholder rights plan to prevent further share accumulation, which Barington has deemed counterproductive [5] Group 4: Operational Challenges - Victoria's Secret faced a cybersecurity breach in June, which resulted in its website being offline for three days in late May [6]