Victoria’s Secret is again to hit the block – and the company’s price tag is set to grow some size.
Industry experts pointed out that after less than a year the $ 1 billion deal to sell the struggling lounger triggered the coronovirus crisis, the company is now preparing for a sale or spinoff that would take four from that figure. Times may be higher. Post.
Victoria Secret owner L Brands – whose former chairman Les Wexner also died last year because the 83-year-old billionaire had ties to dead pedophile Jeffrey Epstein – tapped Goldman Sachs to lead bra-and-panty empire sales did. Sources said that the recent financials along with pitchbooks are starting to circulate in the coming days.
The number would look far better than last spring, when L Brands was forced to abandon a deal with private equity equity Seacamor Partners to sell a 55 percent stake in the company for $ 55 million. Psychomore was sued for exiting the deal after Victoria’s secret stores were given a discount on rent after the onset of the epidemic.
This week, L Brands said that Victoria Secret’s fourth-quarter earnings before interest and taxes, despite a 15 percent drop in sales more than doubled from a year earlier – a sign that shoppers are looking at the full price of their friley wares. Ready to repay.
BMO Capital Markets analyst Simeon Siegel said Victoria’s secret could now be “$ 4 to $ 5 billion” after its $ 1 billion Secamor deal was foiled. He said that potential buyers would be willing to earn at least six times the company’s Ebitda or before interest, taxes, depreciation and amortization.
“The issue was never getting people to buy the product, but they got it to pay the full price,” Seagal said.
Bern Barshay, editor of the New York-based newspaper Empire Financial Daily, has confirmed that Victoria’s secret sales are “more quickly projected to exceed $ 4 billion in hedge funds”, which the company is aiming to wrap by August . He said that the brand was valued at $ 15 billion five years ago.
Barshay said, “There was a $ 1 billion theft in Sycamore and would regret having repaid the deal.” “” I think Seacamore panicked and Victoria’s Secret made the storm better than what people expected. “
For many, Victoria’s Secret seemed like a lost cause before COVID-19. The splendid runway suggests that its supermodel-based strategy was anchored and became a critique and jokes with spectacular developments in the 1990s. Meanwhile, a group of rivals was boosting growth by looking more natural and catering for plus-size women.
This week, however, Victoria’s secret officials confirmed they were quietly in rebate and increasing profit margins, even closing 250 of the company’s 900 stores and mass layoffs. is. In reference to a recent marketing push with plus-size models such as Devin Garcia and Candice Huffine, management said Thursday that the brand aims to be “more inclusive and relevant to the modern woman”.
“We are sexy to support whatever she thinks she needs,” said Martin Waters, Victoria Secret’s lingerie chief executive. “We feel that we should appeal to all women for more stages of our lives [and] We do not always have that balance right, which creates opportunities for competitors to attack us. “
As The Post reported last month, the moves are starting to pay off as jump-up women find ways to differentiate themselves as their options for travel and entertainment have all but dried up, analysts say.
Recently a customer on the company’s Facebook page wrote, “It is great to see a woman with a fuller figure in a VS advertisement.” “I was in the shop today and saw a lot of lingerie in larger sizes, especially bras. Someone with the company is finally realizing beautiful women. “
– Specific Reporting by Thornton McAnery