WWD : Victoria’s Secret Gets Runway Ready Again

Victoria’s Secret Gets Runway Ready Again
The company teased the return of its runway bonanza.

The Angels are getting ready to come back.

Victoria’s Secret & Co. confirmed that its runway show would be returning this year with a teaser on Instagram that also encouraged shoppers to download the brand’s app to get additional details.

For years the show was a televised staple for fashion, drawing big-name models with big social reach to the runway each fall and plastering the brand everywhere with not just the famed Angel wings, but fantastical looks.

After a hiatus and some soul searching about just who the show was for and why the brand seemed so obsessed with pleasing the male gaze, Victoria’s Secret took back to the runway again in Brooklyn last October.

The glitz and the glam were definitely there — as were the models, including Adriana Lima, Alessandra Ambrosio, Grace Elizabeth, Taylor Hill and Tyra Banks, and wings aplenty. Cher, Tyla and Lisa were musical guests.

But the vibe was different.

The show’s return was orchestrated by women and the looks on display were not aspirational one-offs, but looks that would be in the brand’s stores.

Hillary Super, who became chief executive officer of the company shortly before the show last year, is clearly ready to carry on the tradition and use the event to stoke brand heat, building interest with consumers as the runway is readied.

The trick is going to be to use that brand heat to drive the business, which is still in turnaround mode and facing pressure from activist investors. Last month, Barington Capital chief James Mitarotonda slammed the company for revenue and stock declines, “operational and strategic shortcomings” and pushed for it to replace most of all of its board members.

Mitarotonda said the company should be “reestablishing merchandising discipline, launching bold, exciting and imaginative marketing campaigns, and, where appropriate, reintroducing successful legacy elements, such as the iconic Angels campaign.”

The Angels at least are due to hit the runway again.

>>> US Gapping down

Gapping down
In reaction to earnings/guidance:
  • BKKT -39.5% (also to sell Loyalty business; also prices offering consisting of common stock at warrants), FULC -23.2%, NEO -17.6%, WHR -17% (also board recommends reduction in quarterly dividend), XPER -14.9%, XPER -14.9%, NVO -14.2%, HLIT -14.1%, EXEL -11%, KFRC -7.3%, SWK -6.8%, RCL -5.7%, GBFH -5.4%, NOV -5.3%, NUE -4.9%, UPS -4.9%, AUDC -4.8%, CARR -4.7%, SPOT -3.8%, CURB -3.7%, UNH -3.7%, MTSR -3.6%, STLA -3.5%, MRK -3.5%, SANM -3.4%, PYPL -3%, NEOG -2.6%, NSC -2.6%, WU -2.1%, WWD -2.1%, BRO -1.5%, JCI -1.4%, UFPI -1.2% (also authorizes new $350 mln share repurchase program), VLTO -1%, DTE -1%
Other news:
  • FULC -22.3% (reports positive results from the 12 mg dose cohort of the Phase 1b PIONEER trial of pociredir in sickle cell disease)
  • MRT -10.4% (will initiate a corporate treasury strategy that incorporates the acquisition of certain crypto assets as part of a diversified approach to managing cash reserves)
  • BMNR -7.4% (announces that its Board of Directors has approved a stock repurchase program to acquire up to $1 bln of the company's outstanding common stock)
  • VRSN -6.5% (prices secondary offering by by affiliates of Berkshire Hathaway (BRK.A, BRK.B) of 4.3 mln shares of common stock at $285.00 per share)
  • CELC -4.8% (concurrent offerings of $150 mln of convertible notes and $75 mln of common stock)
  • MRK -3.5% (premiums for Medicare part D plans expected to increase, according to WSJ)
  • NSC -2.7% (Union Pacific (UNP) will acquire NSC in a stock and cash transaction, implying a value for Norfolk Southern of $320/share)
  • BKR -1.1% (Flowserve (FLS) terminates merger with Chart Industries, will receive $266 mln breakup fee after Baker Hughes' (BKR) superior bid)
Analyst comments:
  • ALB -2.4% (downgraded to Underperform from Neutral at Robert Baird)

>>> US Gapping up

Gapping up
In reaction to earnings/guidance:
  • WGS +26.6%, GTLS +16.8%, CLS +11.6%, AMKR +9.6%, PHG +9.2%, CDNS +8.6%, SOFI +7.6%, CECO +6.9%, ALKS +6.9%, TFII +6.3%, FLS +5.7%, RNGR +5.6% (also to launch industry's first hybrid double electric workover rigs), RMBS +5.4%, CR +5.3%, PII +4.5%, XPRO +4.4%, SSD +4.2%, NMR +4.2%, CSTM +4.1%, SSTK +4%, GLW +3.9%, AWI +3.7%, BRX +3.4%, DYN +3%, GPK +2.9%, CBRE +2.7%, BYON +2.4%, AZN +2.3%, JBLU +2.3%, INCY +2%, OLN +1.7%, CINF +1.6%, LAD +1.6%, HIG +1.5%, LTM +1.5%, BAND +1.5%, BCS +1.4%, ABG +1.3%
Other news:
  • SCNI +62.4% (announces new peer-reviewed publication supporting PC111 as a disease-modifying therapy for Pemphigus and SJS/TEN)
  • SRPT +39.3% (FDA informs co that it recommends co remove its pause and resume shipments of ELEVIDYS for ambulatory individuals)
  • GTLS +16.5% (Flowserve (FLS) terminates merger with Chart Industries, will receive $266 mln breakup fee after Baker Hughes' (BKR) superior bid)
  • APLS +16.2% (receives FDA approval for EMPAVELI)
  • NYXH +9.9% (DREAM pivotal study data published)
  • CDNS +8.6% (settlement agreement, to pay BIS and the DOJ $140.6 mln)
  • FLS +5.7% (Flowserve (FLS) terminates merger with Chart Industries, will receive $266 mln breakup fee after Baker Hughes' (BKR) superior bid)
  • TATT +4.1% (signs $10 mln contract with Israeli defense integrator)
  • LDI +4.1% (founder and chairman named permanent CEO)
  • PTCT +4% (FDA approves Sephience to treat PKU)
  • GL +3.2% (DOJ will not be taking enforcement action)
  • OLO +2.1% (preliminary merger proxy statement detailing rejected bid)
  • EYPT +2% (has completed enrollment of its Phase 3 pivotal program with the full enrollment of the LUCIA trial, the second of two identical ongoing pivotal non-inferiority trials evaluating DURAVYU for the treatment of wet age-related macular degeneration)
  • HESM +1.4% (increases dividend)
  • UNP +1% (Union Pacific (UNP) will acquire NSC in a stock and cash transaction, implying a value for Norfolk Southern of $320/share)
Analyst comments:
  • EW +1.9% (upgraded to Buy from Neutral at BTIG Research)
  • AFYA +1.2% (upgraded to Neutral from Sell at Citigroup)

>>> Boeing beats by $0.16, beats on revs; 737 program increased production rate

Boeing beats by $0.16, beats on revs; 737 program increased production rate to 38/mo; 787 program production rate increased to 7/mo (236.41 +3.35)
  • Reports Q2 (Jun) core (non-GAAP) loss of $(1.24) per share, excluding non-recurring items, $0.16 better than the FactSet Consensus of ($1.40); revenues rose 34.9% year/year to $22.75 bln vs the $22.15 bln FactSet Consensus.
    • "Our fundamental changes to strengthen safety and quality are producing improved results as we stabilize our operations and deliver higher quality airplanes, products and services to our customers...As we look to the second half of the year, we remain focused on restoring trust and making continued progress in our recovery while operating in a dynamic global environment."
  • Segment Performance:
  • Commercial Airplanes Q2 segment revenue grew 81% yr/yr to $10.87 bln with (5.1)% segment operating margin.
    • CA results primarily reflect higher deliveries. The 737 programincreased the production rate to 38/mo in Q2 and plans to stabilize at that rate before requesting approval to increase to 42/mo later this year.
    • The 787 program production rate is now at 7/mo.
    • Commercial Airplanes booked 455 net orders in the quarter, including 120 787 and 30 777-9 airplanes for Qatar Airways and 32 787-10 airplanes for British Airways. Commercial Airplanes delivered 150 airplanes during the quarter, and backlog included over 5,900 airplanes valued at $522 billion.
  • Defense, Space & Security Q2 segment revenue grew 10% yr/yr to $6.62 bln with 1.7% operating margin.
    • Co says DSS results reflect stabilizing operational performance. During the quarter, DSS captured an award from the U.S. Air Force to build four T-7A Red Hawk production representative aircraft and began ground testing on the first MQ-25 Stingray for the U.S. Navy. Backlog at DSS grew to $74 bln with 22% representing orders from customers outside the US.
  • Global Services Q2 segment revenue rose 8% yr/yr to $5.28 bln with 19.9% segment operating margin. Results reflect favorable performance and mix. In the quarter, Global Services completed the sale of its maintenance, repair and overhaul facility at Gatwick Airport and secured a contract to provide P-8A aircraft training systems and support to the Republic of Korea Navy.

>>> US Research Calls I

Research Calls I
  • Upgrades
    • Afya (AFYA) upgraded to Neutral from Sell at Citigroup, tgt $14
    • Allegion (ALLE) upgraded to Neutral from Underperform at BofA Securities; tgt $175
    • BlackLine (BL) upgraded to Outperform from Market Perform at Raymond James, tgt $67
    • CF Industries (CF) upgraded to Neutral from Underweight at JPMorgan, tgt $92
    • Edwards Lifesciences (EW) upgraded to Buy from Neutral at BTIG Research, tgt $100
    • Equity Lifestyle (ELS) upgraded to Overweight from Equal Weight at Barclays, tgt $67
    • Generac (GNRC) upgraded to Buy from Neutral at Guggenheim; tgt $190
    • Sarepta Therapeutics (SRPT) upgraded to Neutral from Underweight at JPMorgan, tgt $24
    • Sarepta Therapeutics (SRPT) upgraded to Outperform from Perform at Oppenheimer, tgt $37
  • Downgrades
    • Adaptimmune Therapeutics (ADAP) downgraded to Neutral from Buy at H.C. Wainwright
    • Albemarle (ALB) downgraded to Underperform from Neutral at Robert W. Baird, tgt $60
    • Cadence Design (CDNS) downgraded to Neutral from Overweight at Piper Sandler, tgt $355
    • Domino's Pizza (DPZ) downgraded to Sector Perform from Outperform at RBC Capital, tgt $500
    • Healthpeak Properties (DOC) downgraded to Sector Perform from Outperform at Scotiabank, tgt $19
    • Medpace (MEDP) downgraded to Sell from Neutral at UBS, tgt $305
    • Pentair (PNR) downgraded to Underperform from Neutral at BofA Securities; tgt $100
    • Tapestry (TPR) downgraded to Neutral from Buy at BofA Securities; tgt $115
    • Whirlpool Corporation (WHR) downgraded to Underperform from Neutral at BofA Securities, tgt $70
  • Others
    • Aris Water Solutions (ARIS) resumed with a Neutral at JP Morgan; tgt $25
    • atai Life Sciences N.V. (ATAI) initiated with an Outperform at Oppenheimer; tgt $14
    • Brookfield Asset Management (BAM) initiated with an Outperform at National Bank, tgt $71
    • Brookfield Corp. (BN) initiated with an Outperform at National Bank, tgt $82
    • Comstock (LODE) initiated with a Buy at Ladenburg Thalmann; tgt $12
    • D-Wave Quantum (QBTS) initiated with a Buy at Rosenblatt, tgt $30
    • IonQ (IONQ) initiated with a Buy at Rosenblatt, tgt $70
    • Lionsgate Studios (LION) initiated with a Peer Perform at Wolfe Research
    • NICE Systems (NICE) assumed with a Neutral at DA Davidson, tgt $195
    • SANUWAVE Health (SNWV) initiated with a Buy at Roth Capital, tgt $49
    • Sarepta Therapeutics (SRPT) initiated with a Market Perform at Bernstein, tgt $13

>>> US Early premarket gappers

Early premarket gappers
  • Gapping up:
    • SRPT +34.8%, CLS +12.2%, NYXH +9.5%, PHG +9.5%, PTCT +9%, AMKR +9%, RNGR +8.8%, CDNS +7.7%, PII +7.7%, CR +6.8%, TFII +6.3%, RMBS +5.9%, CINF +5%, SSD +4.2%, NMR +4.2%, AWI +3.7%, TATT +3.6%, BYON +3.5%, BRX +3.4%, AZN +3.3%, LDI +3%, DYN +3%, GL +2.7%, LAD +2.6%, APLS +1.9%, WRD +1.8%, WFRD +1.7%, OLN +1.7%, HIG +1.5%, LTM +1.5%, CRCL +1.4%, HESM +1.1%, DX +1%, STX +1%, UHS +0.7%, BCS +0.7%
  • Gapping down:
    • BKKT -38.4%, XPER -19%, WHR -15.5%, HLIT -13.6%, EXEL -12.8%, MRT -8.6%, SWK -8%, KFRC -7.3%, CELC -7.1%, SPOT -6.3%, VRSN -5.8%, NUE -5.5%, GBFH -5.4%, NOV -4.4%, MTSR -3.6%, UNH -3.3%, UPS -3.2%, WWD -3.1%, AUDC -2.9%, STLA -2.9%, BRO -2.5%, CARR -2.5%, SANM -1.9%, WELL -1.4%, UBER -1.3%, WU -1.2%, UFPI -1.2%, CSTM -0.9%