Key takeout
Victoria’s Secret (VSCO) shares are rising in pre-market trading Monday following reports that activist investor Barrington Capital Group has built a stock in the struggling Lingerie Company.
Citing those familiar with the issue, the Wall Street Journal reported late Sunday that Barrington is currently planning to continue to boost its stake of more than 1%. The company plans to “consider Victoria’s secrets, if not all, to replace the majority with new, if not all, independent directors,” and to acquire intimate apparel companies to reinforce their stock with a focus on the core bra business, the report said.
Retailer’s stocks have grown nearly 3% in pre-market trading, but entered Monday after losing 56% of this year’s value. Last week, the company lowered its full-year outlook when it announced its first quarter results in late May, when cyberattacks hampered the company’s business.
Barrington did not immediately respond to an Investopedia request for comments.
