Victoria’s Secret’s improving performance could bode well for the sale of the brand.
L Brands is in talks with potential buyers to sell Victoria’s Secret approximately one year after a prior deal was cancelled amid the pandemic, reported Bloomberg. The company, which also owns Bath & Body Works, is looking for possibly more than double the $1.1 billion valuation in the prior deal.
L Brands recently increased its first-quarter earnings guidance (for the second time), citing a stronger forecast at both Bath & Body Works and Victoria’s Secret. The lingerie brand could now target a valuation of at least $2 billion to $3 billion in a potential sale, the report said.
In May 2020, L Brands and Sycamore Partners on Monday confirmed by “mutual agreement” the termination of Sycamore’s previously announced agreement to acquire the retailer’s Victoria’s Secret business for about $525 million in a deal that valued the brand at $1.1 billion.
In March 2021, L Brands said that it planned to spin off or sell Victoria’s Secret, includes the lingerie, beauty and Pink divisions, with either option to be completed by August.