Victoria Secret closing more than 50 stores in North America this year
- Author: David Armstrong Mar 03, 2019,
Mar 03, 2019, 1:15
L Brands Inc., the parent company of Victoria's Secret, just announced they'll be shuttering doors on no less than 53 locations of the lingerie brand, citing a drop in sales and a disappointing holiday season.
Sales at stores open at least a year decreased by 7 percent during Victoria's Secret's most recent quarter, according to L Brands.
"The stores identified for closure either require significant capital, are minimally cash flow positive today relative to the company's overall consolidated average or represent a real estate monetization opportunity", JCPenney said in the release. The results were significantly impacted by $99.2 million in expenses related to L Brands' sale of La Senza. The former president of Tory Burch, John Mehas was finally installed at Victoria's Secret Lingerie this year, along with a new brand head at PINK.
Although marketing trends in lingerie have changed, Victoria's Secret has mostly stuck to the same playbook that helped it dominate the industry: push-up bras and celebrity models. The department store chain said same-store sales fell 4% during the fourth quarter. However, an increase in sales at Bath & Body Works, owned by the same company, more than made up for it. Burgdoerfer credited the strong performance in part to White Barn candles into some new and existing stores.
In 2018, the company closed 30 stores.
Net sales for the year to February 2 were US$13.237 billion compared to $12.632 billion for the 53 weeks ended February 3 last year.
"The most important thing, in our view, is the merchandise", he said.
L Brands stock was trading down eight percent on Thursday.