Dive Brief:
- Victoria’s Secret & Co. said Wednesday that retail industry veteran Scott Sekella will become its next finance chief, replacing Timothy Johnson, who plans to retire in June.
- Sekella most recently served as CFO of fabric and crafts retailer Joann and previously held financial leadership roles at Under Armour and Crocs.
- “He has a strong retail background and record of identifying and accelerating strategies that strengthen performance and enhance profitability, which I believe make him the right partner to help lead the next chapter of growth for the company,” Victoria’s Secret CEO Hillary Super said in a press release.
Dive Insight:
Sekella, 48, will be paid an annual base salary of $750,000 in his new role, according to a securities filing. He will also receive a one-time cash bonus of $200,000, subject to repayment if he is terminated by the company for cause or voluntarily leaves within two years of his start date.
The finance leadership transition comes as Reynoldsburg, Ohio-based Victoria’s Secret is on a path to recovery, “with sales inflecting positively, brand sentiment improving, and market share declines stabilizing,” Jefferies Group analysts said in a Wednesday client’s note.
In recent years, Victoria’s Secret has faced a variety of challenges, including sluggish sales, criticism for its lack of model diversity and size inclusivity, and scandal over its former CEO's ties to the late Jeffrey Epstein, the disgraced financier, according to Business Insider.
Since Super took over as CEO in October, the lingerie retailer has seen “encouraging data trends,” including positive foot traffic in October and November and a spike in social media engagements from October to December, the Jefferies note said.
In December, the company reported net sales of $1.35 billion for the third quarter of 2024 ending Nov. 2, an increase of 7% compared with the year-earlier period.
“Strong sales, well-managed operations and disciplined inventory management led to healthy margins and a lower operating loss than originally forecasted,” Super said during an earnings call at the time.
The company’s beauty business continued to be its best performing category, followed by “casual sleep and intimates,” which also experienced growth, she said.
On Wednesday, the company adjusted its forecast for the fourth quarter, projecting a 3% to 4% jump in its net sales, compared with a prior estimate of 2% to 4%.
