• by Thom Forbes  @tforbes, February 15, 2016

Longtime Victoria’s Secret CEO Sharen Jester Turney resigned Friday and Leslie Wexner, the 78-year-old founder, CEO and chairman of parent company L Brands, assumed her responsibilities. Wall Street did not view the surprise announcement kindly; L Brands was down 2.5% on the news

“After 16 years and a record fourth quarter at Victoria’s Secret, I have decided to prioritize my family and my personal life and consider what’s next for me professionally,” Turney said in a statement announcing the decision. “I leave the Victoria's Secret business well-positioned for the next chapter of growth … a strong brand with great momentum.”

Turney, who was seen as a probable successor to Wexner when he steps down, will remain at the company as an advisor.

“Victoria's Secret did suffer a rare stumble in January. Comparable-store sales, a key indicator of a retailer’s growth, declined by 4%, disappointing Wall Street analysts who had expected a 3% increase,” writes Tim Feran for the Columbus Dispatch. “The drop was attributed to the decision to move the Victoria’s Secret semi-annual sale into December, L Brands officials said.”

According to a Financial Times FastFT brief, the brand “has pivoted in recent years, turning its focus back to lingerie, sleepwear and bathing suits after the company’s attempt at selling apparel online failed to gain traction with customers. More recently, the company has tried to jump on board the 'athleisure' trend — which sees people wear work-out apparel outside the gym.” 

Wexner founded L Brands in 1963 with one store — The Limited — in the Kingsdale Shopping Center in Columbus, Ohio, where corporate headquarters remain. Other brands now in the fold are Pink, Bath & Body Works, La Senza and Henri Bendel. All told, it has more than 2,900 company-owned specialty stores in the U.S., Canada and the U.K., and its brands are sold in about 600 franchised additional locations worldwide as well as though catalogs and online, according to its website. 

“According to her biography, Turney was hired by the women’s manufacturer in 2000 as president and CEO of Victoria’s Secret Direct, the brand’s e-commerce arm. Six years later, she was promoted to the same position of the entire brand, which includes stores, e-commerce, and the company’s Pink and Beauty brands,” according to Columbus-based 10TV.com.

“Even with Turney out, the depth of talent at L Brands remains ‘significant,’ Richard Jaffe, an analyst at Stifel Financial Corp., said in a note to clients,” writes Lindsey Rupp for Bloomberg Business. “The question is whether Wexner has enough time for the new duties, he said.”

“While we believe Mr. Wexner’s more active role in the VS brand is a positive for Victoria’s Secret, given his deep retail knowledge, we question if his talents will be stretched too thin,” Jaffe wrote in the note.

“We are very grateful to Sharen for her leadership and all that she has accomplished; Victoria's Secret sales have increased more than 70% to $7.7 billion and profit has increased substantially during her nine years as CEO,” Wexner said in the news release.” While she will be missed, we support her in her choice and wish her well.” 

In a December piece for Business Insider, Mallory Schlossberg delineated five reasons why Victoria's Secret controls the majority of the lingerie market. No. 1 is that it has kept its inventory — and themes — fresh.

“I think the success of Victoria’s Secret really lies in the brand’s ability to entice its consumers into visiting stores and to spend on new product. This is, in large part, achieved by a constant refresh of the range which follows a variety of ever-changing themes,” Neil Saunders, CEO of consulting firm Conlumino, tells Schlossberg in an email.  

No. 2 is that its marketing nowadays appeals to women, though it “was founded with the goal of appealing to men.” L Brands acquired Victoria’s Secret in 1982.

L Brands shares are down 14.2% for the year so far while the S&P 500 is down 9.2% for the same period,” Tonya Garcia reports for MarketWatch.

As if it didn’t have enough to worry about, the New York Postreports “two thieves are wanted for stealing 200 pairs of underwear on two separate occasions from a Victoria’s Secret at the Staten Island Mall last month,” giving new meaning to hot merchandise.