Tear Sheet: Victoria's Secret&Co.'s CEO Transition Underscores Challenging Path Back To Growth

VS recently announced that Hillary Super will replace Martin Waters as CEO; Waters served as CEO since the company's separation from Bath&Body Works Inc. in 2021. The appointment of a new CEO comes amid delayed progress on its business turnaround strategy, particularly surrounding its ability to accelerate growth in its core North American business. We do not expect improvements put in place by new leadership will begin to affect the company's financial results until fiscal year 2025, because it will take time for the new team to begin executing their priorities. Moreover, we believe that VS' strategy to return to growth in North America will be challenging, particularly because the retailer environment remains promotional, and discretionary demand continues

...Rating Component Scores Foreign currency issuer credit rating ##-/Negative/-- Local currency issuer credit rating ##-/Negative/-- Business risk Weak Country risk Very Low Industry risk Intermediate Competitive position Weak Financial risk Intermediate Cash flow/leverage Intermediate Anchor ## Diversification/portfolio effect Neutral (no impact) Capital structure Neutral (no impact) Financial policy Neutral (no impact) Liquidity Adequate (no impact) Management and governance Moderately Negative (no impact) Comparable rating analysis Negative (-1 notch) Stand-alone credit profile ##-...

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