L Brands hit by sagging Victoria’s Secret sales
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L Brands, which owns the Victoria’s Secret, Pink and Bath & Body Works brands, has reported positive comparable and net sales for December.
However, Victoria’s Secret sales failed to pick up during the holiday season.
Net sales reached US$2.5 billion for the five weeks ended December 30, up 3 per cent compared to the same period the previous year, while comparable sales increased 1 per cent.
Bath & body Works sales rose 4 per cent while Victoria’s Secret comparable sales declined 1 per cent. Minus the effect of online sales, Victoria’s Secret comparable-store sales fell 6 per cent.
This follows Victoria’s Secret brand quitting the swim and apparel categories.
For the 48 weeks to the end of December, the company reported net sales of $11.5 billion, down from $11.7 billion. Comparable sales dropped 4 per cent.
Questions & Answers
Q.Did L Brands achieve overall sales growth during the holiday period?
Did L Brands achieve overall sales growth during the holiday period?
Yes, L Brands reported positive comparable and net sales for December. Net sales reached US$2.5 billion, a 3 per cent increase from the previous year, with overall comparable sales up 1 per cent.
Q.Which specific brand contributed positively to L Brands' December sales figures?
Which specific brand contributed positively to L Brands' December sales figures?
Bath & Body Works was a strong performer for L Brands in December. This brand saw its sales rise by 4 per cent, contrasting with the performance of Victoria's Secret.
Q.How did Victoria’s Secret perform in its physical stores during December?
How did Victoria’s Secret perform in its physical stores during December?
Victoria’s Secret comparable-store sales declined by 6 per cent in December when online sales were excluded. This indicates a significant drop in its brick-and-mortar performance during the holiday season.
Q.What is the company's full-year sales performance up to the end of December?
What is the company's full-year sales performance up to the end of December?
For the 48 weeks to the end of December, L Brands reported net sales of $11.5 billion, a decrease from $11.7 billion in the prior period. Comparable sales for this longer duration dropped by 4 per cent.
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