The Q2 net sales of US lingerie maker Victoria’s Secret fell by 6 per cent year-over-year to $1.5 billion.

The brand’s adjusted gross margin slumped by 36.1 per cent owing to supply chain and raw material costs, in addition to uptick in promotions due to slowing footfall.

While the Q2 physical store comps dropped by 7 per cent, digital sales went down to touch low double digits.

The operating income of brand also fell by 37 per cent to $126.9 million during the quarter. The net income too dipped by 41 per cent to $ 89.3 million.

Amongst the products, bras continued to be the best performing merchandise segment for the company in the second quarter.

So, it wasn’t surprising to see the retailer lower its outlook for the full year. Victoria’s Secret now estimates the sales to fall in the mid- to high-single digit range.

The operating income, the retailer believes, is expected to be between $525 million and $575 million, while earlier it estimated the numbers to match last year’s US $ 870 million.

Despite the fall in traffic, the retailer, however, continues to bet on physical locations.