L Brands LB has confirmed that it’s selling Victoria's Secret to Sycamore Partners.
Sycamore will buy 55% of Victoria’s Secret. The deal would also include taking Victoria’s Secret private.
A sale of Victoria's Secret will leave L Brands with the much better-performing Bath & Body Works as its flagship brand. The retailer's sales have risen steadily so that it now accounts for half of L Brands' revenue.
Nick Coe, the current CEO of Bath & Body Works, has been named vice chairman of Bath & Body Works Brand Strategy and New Ventures.
Les Wexner, the CEO who has been at the helm for over 50 years, will step down as CEO but will remain on the board. Wexner will also retain stakes in the companies.
Wexner, at 82 years old, is the longest-serving CEO of companies in the S&P 500.
"We believe that, as a private company, Victoria’s Secret will be better able to focus on longer-term results," Wexner said in a statement.
Over the past year, L Brands is down around 9%.
For the fourth quarter, L Brands expects a 2% comparable-store sales decline, including a 10% increase at Bath & Body Works and a 10% decrease at Victoria's Secret. L Brands still expects fourth-quarter earnings of $1.85 a share, beating FactSet's call for $1.83.
So, is selling the majority of Victoria's Secret enough to put L Brands on the road to redemption? Watch the full video above for Jim Cramer's full take.