Come January 2021 and L Brand may do a spinoff of its Bath & Body Works!
While confirming the same during a virtual conference, Andrew Meslow, Chief Executive Officer, L Brands, said that much of the related work was already done during the failed deal for Sycamore to acquire Victoria’s Secret early this year.
He also, reportedly, added that Bath & Body Works’ business will now be moving away from malls to off-mall locations.
To put it simply, both Bath & Body Works and Victoria’s Secret will be separating into two companies.
The CEO said that the business models of both Victoria’s Secret and Bath & Body Works are quite different and so is the trajectory of the two businesses.
Though Victoria’s Secret has been struggling for several quarters now, it made a super comeback in the third quarter of this year with its operating income surging by a whopping 264 per cent year-over-year to post US $ 115 million.
Despite a good third quarter for Victoria’s Secret, the CEO believes that the separation plans won’t change.
Andrew said that the company is focused on delivering the best possible Q4 performance from both businesses, but efforts will continue to ensure separation happens early next year.
In August, L Brands had hired Goldman Sachs and J.P. Morgan to advice on options for separation of both companies.
We will keep you updated more on the development!