Victoria's Secret is known for its prowess and dominance in the fashion world. The fashion firm is speculated to undergo a corporate transformation that will surely set the bar higher in the competitive world of business and trade.
A prior report released by CNBC revealed the direction that the company is undertaking. According to the report, "Strategic changes at Victoria's Secret, including the decision to exit multimillion-dollar categories such as swim, are likely to cause near-term shakiness for parent company L Brands."
Also, it revealed that with that corporate decision, it would affect the overall profits and revenues for the premium fashion line. Even the firm's shares fell down. It could also be the reason why Victoria's Secret is undergoing a transformation in its strategies. As for CEO Les Wexner's career portfolio, it offers security for the company.
To prove the latter, even Goldman Sachs' Lindsay Drucker Mann said, "CEO Les Wexner's track record of successful innovation and investment leaves us comfortable that these actions will create value long term. That said, we prefer to stay on the sidelines until the full scope and impact of these actions are better understood."
In addition, although there are positive connotations, Victoria's Secret should expect that the transition will not be smooth but would rather be filled with confusion at some point. Even Citi analyst Paul Lejuez, who commented on Victoria's Secret's decision to eliminate its catalog said, "Every guy's worst nightmare, and although the action could save L Brands more than $100 million annually, it could have repercussions."
This is not the only case that companies are seeking comfort and refuge from corporate transformation because other firms are utilizing it as well. Even Amazon and Facebook are incorporating changes on their corporate strategies to implement development as well, as noted by Jobs & Hire.
As Victoria's Secret implements the corporate transformation, there are many things to look forward too and many hurdles to overcome to ensure that the corporate transformation offered more benefits over what the fashion company bargained for.
