L Brands impacted by swim, apparel exit, Victoria's Secret sales fall
L Brands reported a net sales decrease in the month of January due to the exit of swim and apparel categories. Sales slipped 1% to $805.2 million, and comparable sales fell 4%.
Victoria’s Secret was impacted greatly due to the exit decreasing 10% in the month. The brand’s popularity is believed to be diminishing with consumers no longer favoring the classic Victoria’s Secret push-up bra.
Victoria's Secret competitors are not showing signs of intimidation with Lane Bryant going toe-to-toe with Victoria’s Secret directly through an ad campaign; Aerie, which is performing very well in the intimates market; and recently 14 French lingerie brands that came together to hold a rival show named “Lingerie, Mon Amour” during Paris couture week.
Victoria’s Secret fourth quarter comparable sales fell 3% and was offset by a 5% increase in comparable sales for Bath & Body Works. L Brands comparable sales were flat for the quarter. In addition, Bath & Body Works January sales jumped 12% compared to an increase of 3% in the prior year.
Total net sales for the year increased 3% to $12.574 billion and comparable sales increased 2%.
L Brands expects to report fourth quarter earnings of $1.90 compared to its previous guidance for the low end of its initial guidance of $1.85 to $2.00.
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