Second quarter sales sag for Victoria’s Secret owner
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Second-quarter net sales fell by 8 per cent year on year to US$2.7 billion for Victoria’s Secret owner L Brands.
The company says there was a negative impact of about six points with the exit from the swimwear and apparel categories, which particularly hit Victoria’s Secret comparable sales (nine points).
Operating income was $300.9 million, down from $408.2 million for the same quarter last year, while net income slid to $138.9 million from $252.4 million.
Overall the brand finished the quarter with 3077 stores, down from 3074 with 27 openings and 24 closures. For Victoria’s Secret, store numbers were 1174, down from 1177 with six openings and nine closures.
As well as Victoria’s Secret, L Brands owns Bath & Body Works, Henri Bendel, La Senza and Pink. The company runs 3077 specialty stores in the US, Canada, the UK and Greater China, with its brands being sold in more than 750 franchised locations internationally as well as online.
Questions & Answers
Q.Which brands are owned by L Brands?
Which brands are owned by L Brands?
L Brands owns Victoria’s Secret, Bath & Body Works, Henri Bendel, La Senza, and Pink. These brands operate across various international markets, including the US, Canada, the UK, and Greater China.
Q.What caused the significant drop in Victoria's Secret comparable sales?
What caused the significant drop in Victoria's Secret comparable sales?
Victoria's Secret comparable sales were negatively impacted by nine points due to the company's exit from the swimwear and apparel categories. This strategic decision contributed significantly to the overall sales decline.
Q.Did the total number of stores for L Brands increase or decrease this quarter?
Did the total number of stores for L Brands increase or decrease this quarter?
The total number of stores for L Brands slightly increased to 3077 from 3074. This was a result of 27 new store openings and 24 closures across its various brands.
Q.How much did L Brands' net income fall compared to last year?
How much did L Brands' net income fall compared to last year?
L Brands' net income fell to $138.9 million this quarter, down from $252.4 million in the same quarter last year. This represents a substantial decrease in profitability for the company.