Victoria’s Secret Stock Climbs as Activist Investor Barington Capital Pushes for Board Overhaul

Victoria’s Secret & Co. (NYSE: VSCO) experienced a notable uptick in its stock price on June 16, 2025, rising approximately 4% following the announcement that activist investor Barington Capital Group has acquired over a 1% stake in the company and is advocating for significant changes to its board of directors. This development underscores the increasing influence of activist investors in the retail sector, particularly as companies navigate shifting consumer preferences and market challenges.

Barington Capital, led by CEO James Mitarotonda, has a history of engaging with underperforming companies to drive shareholder value. In a letter addressed to Victoria’s Secret Chairwoman Donna James, Barington criticized the company’s strategic direction and leadership, citing a 56% decline in share value year-to-date and a market capitalization drop from over $6.5 billion in 2021 to approximately $1.5 billion. The firm is urging the company to replace a majority, if not all, of its board members with new independent directors who possess experience in brand revitalization, operational efficiency, and global market expansion.

Central to Barington’s concerns is the performance of CEO Hillary Super, who assumed the role in 2024 after previous positions at Savage X Fenty and Anthropologie. Barington argues that Super and the current board lack the necessary experience and strategic clarity to navigate the company’s turnaround. The investor also highlights the potential of Victoria’s Secret’s beauty segment, suggesting it could be as valuable as the company’s current market capitalization if properly leveraged.

This activist push adds to existing pressures from other major shareholders. Earlier in June, BBRC International, holding a 13% stake in Victoria’s Secret, called for a board overhaul, criticizing the company’s strategic decisions, including a $625 million share buyback and the $591 million acquisition of Adore Me, which it claims have not delivered expected returns. In response to BBRC’s increasing influence, Victoria’s Secret adopted a “poison pill” strategy in May to prevent any single entity from gaining a controlling stake without offering a fair premium to all shareholders.

Despite these challenges, Victoria’s Secret reported first-quarter results that exceeded revenue and operating income expectations. However, the company lowered its full-year outlook, citing tepid consumer demand and macroeconomic uncertainties. A recent cyberattack in late May further complicated operations, leading to a temporary shutdown of the company’s website and delays in financial reporting.

As activist investors like Barington Capital and BBRC International increase their involvement, Victoria’s Secret faces mounting pressure to reassess its strategic direction and leadership. The company’s response to these calls for change will be closely watched by investors and industry analysts alike, as it navigates the complexities of brand revitalization in a competitive retail landscape.