Victoria's Secret: Stores Closing Amid Poor Holiday Sales

Posted March 03, 2019

Its Bath & Body Works brand had a strong quarter, amassing comps that were up by 12% compared to the year-ago quarter.

Dozens of Victoria Secret stores in North America are facing foreclosure, following the lingerie chain's recent poor financial performance.

Victoria's Secret relied on heavy promotions to draw customers to its stores during the holidays - the types of discounts that generally hurt margins.

More news: Steelers' Brown: 'It's all about respect'

L Brands, the parent of Victoria's Secret, saw its share price fall 8 per cent after releasing disappointing results and halving its dividend payout.

The hard holiday period and planned store closures are the latest turmoil for the brand. He said Victoria's Secret will place a "dominant focus on the customer and on the merchandise" as it attempts to turn around its business. L Brands CEO Stuart Burgdoefer said the company has been "more promotional than we would like over the last several years" in a call with analysts Thursday.

"The main source of weakness likely remains Victoria's Secret", the UBS team led by Jay Sole said in a note emailed to Retail Dive.

More news: Sarri not sure about Kepa's return to Chelsea team

The Nielsen Company said the show has lost more than half its television audience in two years, the Associated Press previously reported. "The market may conclude the Victoria's Secret situation is getting worse". The company added that shares fell an additional 6% after the bell on quarter that left something to be desired for L Brands, while its first quarter may fail to turn a profit. Auden bras will cost $22 and under.

The company did not rule out ending the fashion show or using more inclusive marketing.

Apparently, those Christmas and Black Friday shoppers weren't interested in Victoria's Secret, despite coupons and other promotions that the stores tried to use to bring more people inside. "They don't have a great option".

More news: Washington ups pressure on Venezuela as Guaido tours South America