L Brands says it's already focused on merchandise, costs in response to shareholder Barington
L Brands Inc. said Tuesday it is already focused on bringing merchandise that aligns with consumer trends and managing its real estate portfolio and costs, after an activist shareholder urged it to either spin off Victoria's Secret or take Bed Bath & Body public. "The company, in consultation with its financial advisors, has made significant changes in its business to focus resources on core categories to enhance performance and accelerate growth," L Brands said in a statement. It cited a range of actions, from the closure of Henri Bendel, to the sale of the La Senza business and the reduction in its dividend to free up capital to pay down debt and invest in the business. The statement came after Barington Capital called on management to refresh its product line and explore other ways to unlock value. Shares were down 0.5% Tuesday and have fallen 40% in the last 12 months, while the S&P 500 has gained 2.5%.
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