(Filed Under wholesale Lingerie News). July sales dropped 1% for Victoria’s Secret and Pink comparable stores in North America. When the direct business for two brands is added in, combined sales were about the same as last July.
The drop follows a 4% rise in comp stores sales for those brands in June, and a two month slide in which store sales fell 3% in April and 2% in May.
For the entire second quarter, sales for Victoria’s Secret and Pink comparable stores in North America were up 1%; and when combined with direct sales, were up 2%. The gains were about the same, 1% and 2%, in the two respective categories, year-to-date.
In explaining this portion of parent company L Brands’ lingerie business, Amie Preston, chief investor relations officer stated, “Growth in Pink and core lingerie was offset by declines in non go-forward categories of swim and apparel and in our beauty business.” Earlier this year the company declared it was exiting swimwear and some forms of apparel.
“The merchandise margin rate was down to last year, primarily due to a decline in beauty as we repositioned this category,” she continued. “In addition, margin rate was unfavorably impacted by a planned event featuring sport bras and pants.”
Looking at total sales for Victoria’s Secret and Pink (not just comparable sales), direct and North American store business was up 3% to $1.867 billion in the second quarter, and up 3% to $3.608 billion in the first half of 2016.
Victoria’s Secret’s and Pink direct business rose 8% in the second quarter to $398.3 million, and represented 21.3% of the combined total of North American stores and direct business. In the second quarter of 2015, Victoria’s Secret’s and Pink direct business was $368.9 million, which represented 20.4% of the combined total of North American stores and direct business ($1.806 billion).
Preston noted that “In August we will continue to focus on new fashion in our Body by Victoria collection featuring our new lounge bra. In Pink we will focus on back to school.” She finished by saying that at L Brands, as a whole, “we expect August comps to be about flat.”
L Brands overall, which also includes Bath & Body Works, La Senza lingerie stores and Henri Bendel reported “net sales of $777.0 million for the four weeks ended July 30, 2016, an increase of 2%, compared to net sales of $759.5 million for the four weeks ended Aug. 1, 2015. Comparable sales increased 2% for the four weeks ended July 30, 2016.”
“The company reported net sales of $2.890 billion for the 13 weeks ended July 30, 2016, an increase of 5% compared to sales of $2.765 billion for the 13 weeks ended Aug. 1, 2015. The company reported a comparable sales increase of 3% for the 13 weeks ended July 30, 2016.”
“The company reported net sales of $5.504 billion for the 26 weeks ended July 30, 2016, an increase of 4% compared to sales of $5.277 billion for the 26 weeks ended Aug. 1, 2015. Comparable sales increased 3% for the 26 weeks ended July 30, 2016.”
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