(Filed Under Financial and General Interest News). Jefferies, a prominent investment banking firm, published a research report in late March stating that the Pink brand is “peaking” in the face of strong competition from Aerie. And it predicted this would have a negative impact on the future share price of Pink’s parent, L Brands.
Both Pink and Aerie compete for the younger intimate apparel consumer. And Jefferies analyst Randal Konik claimed Pink currently represents 40% of Victoria’s Secret’s sales (and was 75% of its profit growth since 2011). Lately Pink’s sales have slowed. “Our data shows Pink share loss is real,” he continued, noting, “We analyzed consumer search data, focusing on 12 states where Aerie has a meaningful presence. Aerie outperforms Pink (or gap is very narrow) in those states, indicative of Pink share loss.”
“With Aerie ramping stores and expanding categories, this should accelerate through C’18 and beyond.”
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