Victoria's New "Super" Secret Just Sent Share's Soaring +14%...

In this market, only two things seem to catapult a stock to new heights these days: the mention of AI or a CEO swap. Which is why just after Starbucks became this week's darling, soaring north of 28% after appointing Dan Niccols to the helm, our favorite thirst trap stock is doing the same. 

(Source: Giphy) 

In short, Victoria’s Secret (the company responsible for getting husbands slapped silly at the mall), has officially appointed Hillary Super (“super” cool name btw), the former CEO of Savage X Fenty, as its new head honcho. 

(Source: WWD) 

You may remember this “Fenty” stock from today’s Buffett buys Ulta story, but unfortunately for Rihanna, her company is now pouting under an umbrella today as the announcement has already led to a remarkable surge in $VSCO’s stock - popping up faster than some melons in a push up bra (up +16%).

(Source: Forbes) 

This new CEO in Hillary Super, a 52 year old boss woman (or so it seems), is set to take the helm on September 9th by replacing former failure in chief Martin Waters. Because you know, who the hell starts a new job before Labor day? 

(Source: Giphy) 

This move, similar to Starbucks, comes after Victoria Secret has struggled to regain its footing in a highly competitive market, where everyone and their grandma is starting an OnlyFans service. In addition, the failure to separate themselves from competitors while trying to bridge the gap between diversity and inclusivity has definitely shown its ugly side in the companies financials.

For instance, while the company barely scraped past earnings estimates during their most recent reports, as EPS and Revenue beat expectations by 1.67% and 0.02% - the year over year results looked like a far cry from the picture perfect supermodels the company employs. 

(Source: CNBC) 

Revenue for one, came in at $1.36 billion, but compared to the trailing 12 months, it was down -3.41% YoY. Definitely not bad, but not great either. On the other hand though, Victoria’s Secret net income, diluted EPS, and net profit margin all plunged -500%, -600%, and -514.29% year over year. So clearly, the move to replace Waters was justified. 

Especially considering Super's previous tenure as CEO of Savage X Fenty, has equipped her with a deep understanding of the modern lingerie market, particularly among younger consumers. 

Hillary Super Being “Super” (Source: New York Post) 

This had Victoria’s Secret Chair of the Board, Donna James, expressing confidence in Super’s ability to accelerate growth in the company’s core North American business while stating: “She understands vertically integrated retail brands and has an intuitive understanding of the consumer landscape, informed by customer insights which are critical for consistently delivering in this industry and its ever-accelerating fashion and economic cycles,” Translation: Hillary is “Super” woke smart… 

Keep in mind, this move might also help bring a fresh perspective and new ideas to the table regarding the controversy $VSCO has gotten itself into under Waters leadership. With allegations of workplace misconduct and a failure to adapt to changing societal norms, the company has definitely felt the pain of this century's “body positivity” narrative. 

(Source: Newsweek)

Now only time will tell if Super (with a whopping $2.1 million signing package) can right the previous wrongs of Victoria’s Secrets previous leadership, but at least we now know that the new leadership understands that less than 1% of their consumers look like Gisele Bündchen (shocking, I know). 

(Source: Today.com)

So with that said, while we aren’t talking about Apple, Google, or even Nvidia here, it’s definitely worth keeping an eye on Victoria’s Secret models stock going forward. Like mentioned above, the stock absolutely ripped north of 14% off the news of the new leadership. Plus given that the stock is down -42.17%, the discount value is real af with this one. 

Now I’m definitely not saying “BTFD” here, but I’m definitely not saying ignore the situation either. With a new CEO with extensive experience at other fashion icons like American Eagle, Anthropologie (Urban Outfitters), and Fenty, we could be witnessing the birth of the Dan Niccols of lingerie going forward. 

(Source: Giphy)

Oh and I almost forgot, for you investors who like to do real due diligence on your potential investments, it might be worth checking out the store yourself. I’m sure it’ll be a real eye opener for ya. 

(Source: Giphy) 

At the time of this writing, Victoria’s Secret closed +9.77% on the day. 

Stocks.News holds positions in Apple, Google, and Starbucks as mentioned in the article.