At Victoria's Secret, Chief Steps Down -- WSJ
November 15 2018 - 3:02AM
Dow Jones News
By Khadeeja Safdar
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (November 15, 2018).
Jan Singer, CEO of Victoria's Secret lingerie division, is
departing the company amid declining sales, according to people
familiar with the matter.
Ms. Singer, who has been at the company for about two years,
joined from Spanx, where she served as CEO for approximately two
years. Prior to that, she spent more than a decade as an executive
at Nike Inc.
Since she was hired at Victoria's Secret, Ms. Singer has
launched bra styles emphasizing comfort and fit, in an attempt to
appeal to shoppers looking for more natural looks. But the unit of
L Brands Inc. has continued to struggle.
Last quarter, the company reported lower sales at both
Victoria's Secret and its teen brand Pink, prompting analysts to
question executives about the retailer's marketing message and
heavy use of discounts. Ms. Singer at the time defended the
company's strategy, saying the most recent additions to the product
line were performing well. L Brands is slated to release its latest
quarterly results on Nov. 19.
L Brands's longtime Chairman and Chief Executive Les Wexner has
been trying to turn around the company's results. In the past few
months, he has moved to eliminate smaller brands such as handbag
seller Henri Bendel from his portfolio to focus on Victoria's
Secret. Last month, the company said it would pursue all
alternatives for lingerie retailer La Senza, which it acquired
several years ago.
Victoria's Secret has generated years of growth with images of
busty supermodels and padded bras retailing at prices topping $50,
but new competitors have moved into the category with alternative
styles and messages. Many are gaining traction by emphasizing more
sizing options and advertising that includes different body
types.
Mr. Wexner took charge of Victoria's Secret more than two years
ago and made big changes aimed at ensuring it doesn't suffer the
same fate as many other specialty brands. He changed leadership,
shifted away from catalog mailings, exited the swimsuit business
and doubled down on sports bras to address the rise of the
so-called athleisure trend. He later hired Ms. Singer to help
execute the strategy.
Despite the changes, Victoria's Secret remains married to its
traditional marketing. Last week in a Vogue interview, Ed Razek,
longtime chief marketing officer of L Brands, said that he doesn't
think the Victoria's Secret fashion show should include transgender
models because it's supposed to be "a fantasy," prompting backlash
on social media. He later issued an apology, saying that he
"absolutely would cast a transgender model."
Last year, Ms. Singer hired Jann Parish, an executive from
Calvin Klein, as chief marketing officer of Victoria's Secret and
told analysts she would reinvigorate the brand's marketing. Ms.
Parish recently left the company, prior to the Victoria's Secret
annual fashion show, which took place earlier this month.
Wall Street analysts have questioned how the company can adapt
to changing consumer tastes. "We are concerned that the fashion
show is no longer resonating with consumers whose attitude has
shifted toward more natural looks and relatable beauty," Wells
Fargo analysts wrote in a Nov. 11 research note.
Write to Khadeeja Safdar at khadeeja.safdar@wsj.com
(END) Dow Jones Newswires
November 15, 2018 02:47 ET (07:47 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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