(Filed Under wholesale Lingerie News). Victoria’s Secret and Pink U.S. and Canadian comparable company-owned store sales fell 6% in June (following a 12% drop last June). When the direct business for those brands is added in, the combined comps for the two labels declined only 1% (following a 17% drop in June 2017).
Amie Preston, chief investor relations officer for parent company L Brands, explained the 1% drop: “Growth in beauty was offset by declines in lingerie and Pink. Semi-annual sale had a soft start with negative traffic levels. In response, we extended the sale time period versus last year by about two weeks and reduced pricing to drive traffic and clear inventory, which resulted in merchandise rates down significantly to last year.”
Overall results for L Brands, which also owns Bath & Body Works, La Senza and Henri Bendel, were more positive. “Comparable sales for the five weeks ended July 7, 2018, increased 3 percent compared to the five weeks ended July 8, 2017,” the firm reported. Net sales for the company as a whole “increased 6 percent to $1.282 billion for the five weeks ended July 7, 2018, compared to net sales of $1.213 billion for the five weeks ended July 1, 2017.”
“The company reported net sales of $4.760 billion for the 22 weeks ended July 7, 2018, an increase of 8 percent compared to net sales of $4.424 billion for the 22 weeks ended July 1, 2017. Comparable sales for the 22 weeks ended July 7, 2018, increased 3 percent compared to the 22 weeks ended July 8, 2017.”
In the period between February 3, 2018 and July 7, 2018 the company opened one and closed five Victoria’s Secret stores in the U.S., reducing the total to 980. It maintained 39 Victoria’s Secret shops in Canada, while closing one Pink store there, reducing the total to six. It maintained 140 Pink stores in the U.S.
During the same time period, L Brands closed one La Senza store in Canada, reducing the total to 118. It maintained its five La Senza U.S. shops. The company also closed one company-owned Victoria’s Secret Beauty and Accessories store in China, reducing its total there to 28. Meanwhile it opened one full line Victoria’s Secret China store, raising the total to eight. It maintained its 19 Victoria’s Secret stores in the U.K. and Ireland and its five Pink U.K. stores.
Preston noted that “In July we will focus on delivering new fashion with our T-shirt bra and back to school in the Pink business.” — NM
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