Victoria's Secret owner plans store closures in U.S., Canada
- Author: Wendy Palmer Mar 02, 2019,
Mar 02, 2019, 0:39
The retailer plans to close approximately 53 underperforming Victoria's Secret locations in North America this year.
Slumping "in store" sales is causing the parent company to take quick action by closing 53 North American Victoria Secret stores.
According to the company website, L Brands now owns 957 stores in the U.S.
"We close stores every year". The former president of Tory Burch, John Mehas was finally installed at Victoria's Secret Lingerie this year, along with a new brand head at PINK.
Mr. Burgdoerfer says the business made the decision by analyzing current and projected performance, sales, profits, cash flows and trade dynamics.
What's new. L Brands reported a fourth-quarter profit of $2.14 per share, beating forecasts for $2.08 cents, according to FactSet. "And we are intensely focused on improving results".
The company closed one Bath & Body Works in Canada in 2018 while opening another, and expects to open one more in Canada this year.
L Brands' overall results for its fourth quarter, which includes the Christmas holiday period, were virtually flat as compared to one year earlier.
'People identify Victoria's Secret with what it's been for the last 20 years - very sexy and airbrushed models, ' said investment analyst Janine Stitcher.
"The most important thing, in our view, is the merchandise", he said.
However, the company has not seen enough growth in the last quarter.
L Brands Inc., owner of the lingerie chain, announced Wednesday that Victoria's Secret's US brick and mortar square footage will decrease by about 3 percent.