(Filed Under Financial and General Interest News). Victoria’s Secret comparable stores sales as well as Victoria’s Secret Direct sales both declined in June. For parent L Brands, Inc. (which has been known as Limited Brands) overall net sales for the five weeks ended July 6, were $1.101 billion, slightly higher than “net sales of $1.077 billion for the five weeks ended June 30, 2012.”
Amie Preston, chief investor relations officer, explained that “Victoria’s Secret stores June comparable store sales decreased 1% on top of an 11% increase last year. The decrease was primarily driven by lower clearance sales as we entered into semi-annual sale with fewer clearance units. The merchandise margin rate was up to last year driven by an increase in sales of regular priced merchandise, particularly in lingerie and Pink. In addition, we experienced increased rates within our clearance priced goods driven by less aggressive pricing than last year, as we entered semi-annual sale with less clearance units. Importantly, merchandise margin dollars increased, as well.”
At Victoria’s Secret Direct, “June sales were down 9%, driven by the shift of the first four days of semi-annual sale into June and continued declines in apparel, driven by the repositioning of the category,” Preston claimed. “Merchandise margin rate was about flat to last year.”
Referring to the firm’s Canadian lingerie division, she noted, “At La Senza, June comps were flat. The merchandise margin rate was up significantly to last year, driven by decreased promotional activity.”
The company overall reported “net sales of $4.106 billion for the 22 weeks ended July 6, 2013, an increase of 5% compared to sales of $3.903 billion for the 22 weeks ended June 30, 2012. The company reported a comparable store sales increase of 2 percent for the 22 weeks ended July 6, 2013, compared to the 22 weeks ended July 7, 2012.”
L Brands operates a total of 2,617 specialty stores in the United States, including Bath & Body Works and Henri Bendel. At the time of the financial release it stated that “its brands are sold in more than 700 company-operated and franchised additional locations world-wide.”
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