(Filed Under wholesale Lingerie News). Victoria’s Secret and Pink North American company-owned comparable store sales were up 2% in July, 3% in the second quarter and 4% year-to-date compared to the same periods last year.
Meanwhile, Victoria’s Secret direct sales were down 3% in July, 4% in the second quarter and 5% year-to-date.
Parent company L Brands, which also owns the La Senza lingerie stores in Canada, Bath & Body Works and Henri Bendel, “reported net sales of $5.277 billion for the 26 weeks ended Aug. 1, 2015, an increase of 4 percent compared to sales of $5.067 billion for the 26 weeks ended Aug. 2, 2014.” It noted that across all of its retails locations, “Comparable store sales increased 4 percent for the 26 weeks ended Aug. 1, 2015.”
Net sales for the entire company were “$759.5 million for the four weeks ended Aug. 1, 2015, an increase of 3 percent, compared to net sales of $735.3 million for the four weeks ended Aug. 2, 2014.” For all its stores, “comparable store sales increased 3 percent for the four weeks ended Aug. 1, 2015.”
L Brands “increased its second quarter earnings guidance to $0.66 to $0.68 per share versus its previous guidance of $0.60 to $0.65 per share.”
In remarks explaining the results, Amie Preston, L Brands chief investor relations, said, of the North American Victoria’s Secret and Pink stores, “Our merchandise margin rate decreased versus last year primarily driven by swim clearance. Merchandise margin dollars increased versus last year.” She added that second quarter sales totaled $1.437 billion at the two stores.
Preston explained the decline at Victoria’s Secret direct noting that “low double digit growth in core categories was more than offset by the exit of apparel. The July merchandise margin rate was up significantly to last year driven by the mix into core merchandise categories.” She added that for the division, “The second quarter sales decreased 4% to $368.9 million.”
Sketching out company plans for August, Preston said the stores, “we will focus on our Body by Victoria collection and the T-Shirt Bra at the end of the month. In Pink, we will focus on back to school and the Leopard Lace Bra at the end of the month.”
Company-wide, she added, “we expect August comps to be up low-single digits, including a slight negative impact from the later Labor Day this year.”
As it released its July results, L Brands also noted that during the period between January 31, 2015 and August 1 it had opened 9 and closed two Pink stores in the U.S., raising the total to 122. During the same period it added two Victoria’s Secret stores in Canada, raising the total to 33. Meanwhile, it closed 12 La Senza stores in Canada, dropping the total there to 133. The number of Victoria’s Secret stores in the U.S. remained the same at 983, as did the number of Pink stores in Canada at 10.
The number of Victoria’s Secret stores in the U.K. remained the same at 8 as did the number of Pink stores in that country at 2.
Additional lingerie stores are operated by L Brand partners around the world. During the period between January 31, 2015 and August 1, 38 of the “non-company-owned” Victoria’s Secret Beauty & Accessories Stores were added and three closed, raising the total to 325. These stores offer a limited number of lingerie items, as well as fragrances, bath and body products and accessories. Recently two of these stores were opened in Milan.
In addition, outside of North America, partners closed 34 La Senza stores (and opened one) dropping the total to 233.
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