The parent company of Victoria's Secret is pulling itself up by the bootstraps after it met with bad sales during the holiday season, through the closing down of more than 50 underperforming outlets in North America.
L Brands, the parent of Victoria's Secret, saw its share price fall 8 per cent after releasing disappointing results and halving its dividend payout.
Victoria's Secret isn't looking so hot. The company closed 30 stores previous year as it tried to escape weak malls. Perhaps with that in mind, Victoria's Secret has promised the return of its popular swimwear line online next month, which was originally discontinued in 2016.
Wall Street reaction to the earnings announcement appeared negative Thursday, with shares in L Brands trading eight per cent lower at 10:30 a.m. than Wednesday's closing level.
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The number of planned store closures is a significant increase over recent years. Startups like Adore Me and ThirdLove have broken Victoria's Secret's grip on the industry by selling better-fitting bras and using everyday women, not models, in advertising.
Competative pricing has also played a part in Victoria's Secret's decline. Lululemon and Walmart have also expanded their efforts in the space.
But after excluding significant one-off items, the company's adjusted net income this year was $786.7 million compared to $919.5 million for the 53-week period last year. But shifting its identity could prove hard, said Janine Stichter, analyst at Jefferies.
The company says they not yet released a list of which stores will be closed.