Amy Hauk, the CEO of Victoria’s Secret brand, has announced that she will be leaving the company after only eight months at the helm of women’s lingerie.
As per a securities filing by the company on January 3, Hauk, the CEO of the Victoria’s Secret and Pink brands, informed the company about her choice on December 27, 2022.
According to the filing, Martin Waters, the present Chief Executive Officer of Victoria’s Secret & Co. (VSCO), will take on Hauk’s duties and she is scheduled to leave the company on March 31.
While repositioning its business, VSCO initiates expansion strategies and purchases competitor Adore Me only a few months after the announcement.
In 2008, Hauk became a part of the organization under the former proprietor, L Brands – which in 2021 separated the conglomerate as a company open to public trading – and had been fulfilling the role of CEO for Pink since 2018. Hauk was designated as the CEO of the Victoria’s Secret label in July of the previous year.
The spokesperson for the company stated that Amy Hauk will be stepping down as the CEO of Pink and Victoria’s Secret in order to spend more time with her family in Florida, as shared in our 8-K filing.
The spokesperson added, “There are no intentions to substitute her position. Amy has kindly consented to a well-handled transition from now until the end of March.”
VSCO Buys Adore Me
Victoria’s Secret announced its acquisition of Adore Me, a fellow U.S. Lingerie brand, in an effort to enhance the customer shopping experience and expedite the modernization of its digital platform.
$400 million was allocated to the emerging competitor, while the restructuring overseen by Martin Waters, the CEO of Victoria’s Secret, included the closure of 251 underperforming stores.
The company is anticipated to generate “significant sales and profit” in 2023 through the introduction of Adore Me, which will bring a fresh business model, a subscription scheme, and a program that allows customers to try products before making a purchase.
Most recent financial year its in sales profitable million $247 an estimated and York New in 2011 in founded was Me Adore.
Victoria’s Secret also revealed its plans to increase market share in key categories, such as beauty and intimates, by repositioning its brand to attract a broader and more inclusive customer base for the upcoming Fall season.
Shareholders were informed that the corporation plans to incorporate fresh labels into its collection naturally and via investments, broadening its worldwide influence through global collaborations, and enhancing its in-person narrative and online platforms, all as components of its overall plan.
It also intends to prioritize underrepresented segments and customer demographics and establish a more agile and streamlined organizational framework.
One year prior, the company experienced an operating loss of $203.3 million, whereas it had an income of $32.7 million. The company observed a 15% decline in same store sales and reported first quarter sales of $821.5 billion, which represents a significant decrease of 46% compared to the previous year, 2021.
In recent years, Victoria’s Secret has struggled as some of its customer base turned away from its famous/infamous supermodel shows and advertising, and switched to a growing raft of more niche contemporary lingerie brands.
The curtain has dropped on Fashion Angels’ show, while also incorporating a broader range of models and undergoing a complete overhaul of its marketing and advertising. The company’s actions have garnered a positive reaction.
However, Hauk’s upcoming departure was evidently not included in the plan.
JP Morgan analyst Matthew advised Boss that Hauk’s resignation posed an unforeseen risk to the company’s overall strategy, noting that the central implementation of cost control and supply chain reforms had been instrumental in the company’s rebound.
Hauk left the business after the stock rebounded, with the target price reaching $43 and Boss assigning a ‘Neutral’ rating. However, at the time of writing, the stock had dipped to around $34.
Currently, Victoria’s Secret has a presence in almost 1,350 retail stores worldwide, spanning around 70 countries.