(Filed Under wholesale Lingerie News). September sales dropped 2% at comparable Victoria’s Secret and Pink stores in North America. When the direct business for the two brands is added in, the results were flat to the same month last year.
Amie Preston, chief investor relations officer, referring to the combined results, explained that “Comparable sales excluding the non go-forward categories were up 2%.”
“Strength in the Pink business,” she continued, “was offset by declines in the lingerie and beauty businesses, as well as the exit of non go-forward swim and apparel. The merchandise margin rate was down significantly to last year, primarily due to a decline in beauty as we reposition this category and by the impact of exiting non-core businesses. In addition, margin rate was unfavorably impacted by promotional events to drive trial in key categories and proactively manage inventory.”
She concluded that for L Brands overall, “we expect October comps to be up low single digits.”
Published with the September results was a chart showing that the company opened, during September, its first three Las Senza stores in the U.S. (Note: on August 23 BODY reported L would be opening at least four this fall).
In addition, the chart showed the company had recently opened three additional VSBA shops in China, bringing the total in that country to 29. These shops sell only a limited amount of intimate apparel.
As a whole, L Brands “reported net sales of $971.4 million for the five weeks ended Oct. 1, 2016, an increase of 6 percent, compared to net sales of $919.9 million for the five weeks ended Oct. 3, 2015. Comparable sales increased 3 percent for the five weeks ended Oct. 1, 2016.”
In addition, the company “reported net sales of $7.328 billion for the 35 weeks ended Oct. 1, 2016, an increase of 4 percent compared to net sales of $7.023 billion for the 35 weeks ended Oct. 3, 2015. Comparable sales increased 3 percent for the 35 weeks ended Oct. 1, 2016.”
In October, in its North American lingerie stores, Preston noted “we will focus on our sport collection and new Pink active bras. At the end of the month we will focus on our bralette collection.” — NM
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