Shares of Victoria's Secret (NYSE: VSCO) were surging today after the struggling apparel company named a new CEO, Hillary Super. Investors seem to be hopeful that the move will lead to a turnaround for the business.
As of 1:17 p.m. ET on Wednesday, the stock was up 14.6% on the news.
Meet the new boss
Victoria's Secret said this morning that Super would replace Martin Waters as CEO and member of the board, taking over on Sept. 9.
Super was most recently the CEO of Savage X Fenty, the intimates and accessories brand, and global CEO of Anthropologie, which is owned by Urban Outfitters. The company said she brings three decades of merchandising expertise, with board chair Donna James adding, "VS&Co welcomes Hillary as our new CEO to power the business' next chapter and deliver the foremost tenet of our transformation strategy: accelerating growth in our core business in North America."
Shopper carrying bags of merchandise.
Separately, the company reported preliminary second-quarter results that were slightly better than guidance, with sales falling 1% to 2%, compared to guidance for a 1% to 3% decline.
Even better, adjusted earnings per share are on track to be well ahead of guidance, coming in at $0.34 to $0.39, compared to its forecast of $0.05 to $0.20.
Can Super turn the business around?
Victoria's Secret is a shadow of its former self and is worth a fraction of what it was at its peak roughly a decade ago, when it was the cornerstone of L Brands.
Getting back to that status is unlikely as the market for women's intimates has changed and new competition has entered the arena, but there are potential improvements to be made in the business. Getting back to sales growth is one of them.
Keep an eye on new initiatives from Super as she takes over; investors could respond favorably to further changes at the apparel stock.
Should you invest $1,000 in Victoria's Secret & Co. right now?
Before you buy stock in Victoria's Secret & Co., consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Victoria's Secret & Co. wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $711,657!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. TheStock Advisorservice has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of August 12, 2024
Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
