Victoria’s Secret operates as a division of L Brands, a publicly traded corporation majority owned by Leonard Green & Partners, a private equity firm that controls the brand’s strategic direction. While the catalog and marketing imagery present an image of effortless glamour, the ownership structure reveals a more complex financial narrative driven by leveraged buyouts and shareholder expectations.
The Private Equity Takeover
For decades, Victoria’s Secret was a staple of the publicly traded L Brands portfolio. However, in 2020, the company underwent a significant transformation when L Brands announced it would split into two entities: Bath & Body Works and a new entity retaining the Victoria’s Secret brand. This separation was followed by a change in control, where private equity firm Leonard Green & Partners acquired a majority stake, taking the brand private and removing it from the volatility of the stock market.
Leonard Green & Partners
Headquartered in Los Angeles, Leonard Green & Partners is a leading private equity firm specializing in leveraged buyouts. Their acquisition of Victoria’s Signal marked a strategic shift from the previous public company model, allowing for long-term investment decisions without the pressure of quarterly earnings reports. This move was intended to stabilize the brand and fund a comprehensive reboot of its image and product strategy.
Acquired majority stake in 2020.
Focuses on operational improvements and brand revitalization.
Removed the brand from public trading to reduce activist investor pressure.
Brand Strategy Under New Ownership
The change in ownership directly influenced a seismic shift in marketing and product focus. Under public company constraints, the brand relied heavily on the Angels supermodel campaigns. Private ownership provided the freedom to pivot away from that hyper-sexualized image toward a message of female empowerment and inclusivity, attempting to align with modern consumer values.
Digital Transformation and E-commerce
With private equity backing, Victoria’s Secret invested heavily in digital infrastructure. The goal was to capture the e-commerce market share that had been dominated by fast fashion and direct-to-consumer brands. This included overhauling the website, improving mobile user experience, and leveraging data analytics to personalize the shopping journey for a younger demographic.
Despite these changes, the brand continues to face challenges regarding consumer trust and relevance. The new ownership is tasked with rebuilding a loyal customer base that felt alienated by past marketing tactics, ensuring the brand remains a staple in the competitive lingerie market.
