Victoria's Secret made the somewhat controversial decision to abandon its seemingly popular swimwear and apparel categories to focus solely on lingerie, beauty and the Pink brand. According to a report, Victoria’s Secret sales declined every single month last year. Things were worse in the first half of the year, with drops between 10 and 14 per cent most months. Towards the end of the year, those declines shrank somewhat to the single digits.
With e-commerce taken out, Victoria’s Secret same-store sales plummeted 6 per cent after a 2 per cent decline a year ago, and bath and body Works added 4 per cent, for an overall 2 per cent same-store sales decline at L Brands stores.
L Brands CFO Stuart Burgdoerfer says the brand will continue to be disciplined in the management of inventory, expenses and capital. Investors will continue to keep an eye on how L Brands handles Victoria Secret retail locations and products in general. L Brands stock has consistently slid since it peaked in 2015 with a price of close to $100 a share, as of press the stock (LB) is trading in the $44 range.
