According to one Wall Street analyst from Citigroup, Victoria’s Secret is finally too worse for wear to bounce back, as stock in its owner, L Brand, was recently downgraded from a “buy” to a “neutral” rating — a sign that the public has lost interest.
The brand’s management has been too “slow to implement meaningful change” as “cultural norms shift away” from the aspirational models employed by Victoria’s Secret, Citi’s analyst Paul Lejuez told CNN. Victoria’s Secret has refused to adapt to changing attitudes towards women as its competitors are now embracing a wider size range in both their products and ad campaigns — a direct move away from Victoria’s Secret’s penchant for unrealistic body standards. Rivals like ThirdLove, and American Eagle’s spinoff, Aerie, however, are capitalizing on this shift by devoting themselves to inclusivity.
One of the major signs that the company has lost touch with what customers want was its announcement in May that its once-beloved fashion show will no longer be televised.
And now, it may be “too little too late” for Vickie’s, even if L Brands decides to finally change up the company’s message, since it’s seemingly made a point of sticking to the status quo it created.
“It will be a tough balancing act to attract new customers without alienating its existing customer base,” Lejuez said. “While we still think a change toward inclusivity is the right move, a move in that direction might be more difficult to pull off.”
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