(Filed Under wholesale Lingerie News). Victoria’s Secret and Pink comparable store sales in North America fell 1% in October and 2% in the fiscal third quarter ended October 29, 2016. When the direct business for both brands was added in, sales fell 2% in October and 1% in the third quarter.
Amie Preston, chief investor relations for parent company L Brands, explained “Strength in the Pink business and sport category was offset by declines in the exit of non go-forward swim and apparel and the lingerie business.”
She added, “The merchandise margin rate was down to last year, primarily due to a decline in beauty as we reposition this category. In addition, margin rate was unfavorably impacted by promotional events to drive trial in key categories and proactively manage inventory. Third quarter sales at sales at Victoria’s Secret increased 1% to $1.584 billion and comps decreased 1%. Comps excluding the non go-forward categories were up 1%. Third quarter sales at Victoria’s Secret direct increased 4% to $298.2 million.”
Third quarter sales at the Victoria’s Secret and Pink stores in North America totaled $1.286 billion.
Meanwhile, parent company L Brands, which also includes Bath & Body Works, La Senza and Henri Bendel, recorded combined sales of $2.581 billion in latest quarter, up from $2.482 billion in the quarter ended October 31, 2015.
Preston noted that at Victoria’s Secret, “In November we will focus on our new Beautiful Collection and holiday apparel in the Pink business.” She concluded that, company-wide, “we expect November comps to be up low single digits.”
Along with the financial data, L Brands reported that from January 30 through the end of the latest quarter, the company had opened 14 Victoria’s Secret stores in the U.S. and closed six, raising the total to 998. During the same period it opened five and closed one Pink stores bringing the total to 132. There are 37 Victoria’s Secret and nine Pink stores in Canada. In Canada the company closed one La Senza store, dropping the total there to 125, and recently opened its first three La Senza stores in the U.S.
Internationally, during the first three quarters, L Brands opened two Victoria’s Secret stores in the U.K. bringing the total there to 14. One Pink store was added in that country, raising the total to three.
Various partners also operated, at the end of the latest quarter, 381 Victoria’s Secret Beauty & Accessories stores. And international partners operate 21 Victoria’s Secret, 5 Pink and 207 La Senza stores. — NM
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