Proxy Statement for the 201 Annual Meeting of ... - AnnualReports.com

Apr 10, 2015 - PROPOSAL 4: 2015 CASH INCENTIVE COMPENSATION ..... She is founder and chair of the board for The Center for Family ...... Call center.
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Proxy Statement for the 201 5 Annual Meeting of Stockholders and 2014 Annual Report

Proxy Statement for the 201 5 Annual Meeting of Stockholders and 201 4 Annual Report

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3/31/15 8:26 PM

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3/31/15 8:26 PM

Dear Partner, In last year’s letter I wrote that we were not satisfied with our performance in 2013 … that we did not execute as well as we could or should have. I’m happy to say that we got better in 2014 … in fact, the company delivered record financial performance. Here are the headlines: Sales increased 6% to $11.5 billion



Comps increased 4%



Merchandise margin rate increased



Operating income rate increased to 17.1% from 16.2%



Earnings per share increased 15% to $3.50



We increased our regular annual dividend by 47% to $2.00 per share



We declared a $2.00 per share special dividend



We authorized a new $250 million share repurchase program



We delivered total shareholder return of 69%

We got better because we did what we said we would do … we focused on execution of the fundamentals … and being FOCUSED, FAST and FRUGAL. FOCUSED: We focused on our top priorities and the goal for each … and just as important, we intentionally decided what we were NOT going to do. For example, we exited the apparel and makeup businesses in Victoria’s Secret – a tough decision, to exit businesses, but the right decision to put more time and resources into core categories. We intensified our focus on our customers … spending more time in stores … so that we can significantly improve our customers’ experience. FAST: Speed matters … we further reduced our lead times and managed inventory well, increasing inventory turns. We made decisions faster … so that literally everything moves faster. FRUGAL: We were more efficient in time and money. As I said last year, being frugal isn’t about cost – it’s about value. So we made progress, and we got better … we now have the opportunity to get even better. Our goal is to be the best specialty retailer in the world, and we’re getting closer, but we’re not there yet. The gold medal in the global retail Olympics is within our reach. It will be harder to continue to get better on our best-ever results … however, now is the time to get better … more focused, even faster and yet more frugal (efficient). I am optimistic about 2015 – Victoria’s Secret, PINK and Bath & Body Works are great brands with high performance that lead their categories … and we are focused on making them better in every way and growing them internationally. We have a strong team of talented leaders and great people at every level in the business … great teams. We have significant opportunities for growth. I am very proud of what we accomplished in 2014 – not only in our performance – but in what we do and how we choose to contribute to our communities. Our associates donated more than 50,000 volunteer hours, and as a company we raised more than $8 million for cancer research … and supported literally hundreds of community initiatives. We are purposed. We are continuing to get better … focusing on the core fundamentals that drove our performance in 2014. We are determined to be even more focused, faster and more frugal.

Chairman’s Letter



EXECUTION IS THE STRATEGY. Best-in-world performance looks like $20 billion in sales at a 20% operating income rate … and I know that with our brands and our people, and our teams, we will reach our goal. We are committed … energized … and determined to set new records! Sincerely,

Leslie H. Wexner Chairman and CEO

May 21, 2015

Proxy Statement

Notice of Annual Meeting of Stockholders and Proxy Statement

Important Notice Regarding the Availability of Proxy Materials for t