(Filed Under Financial and General Interest News). Victoria’s Secret and Pink September comparable sales in North America fell 5%. Meanwhile, parent company L Brands has just opened its fifth La Senza lingerie store in the U.S., this one located in the Woodfield Mall in Schaumburg, Illinois.
Amie Preston, chief investor relations explained the sales decline stating, “growth in the Pink business was more than offset by about a 3 point negative impact of exiting swim and apparel and a decline in the lingerie business.” She continued, “The merchandise margin rate was up slightly to last year, driven by lower clearance and promotions this year.”
In addition to its lingerie labels, L Brands owns Bath & Body Works and Henri Bendel, operating a total of 3,080 company-owned specialty stores in the United States, Canada, the United Kingdom and Greater China.
During 2016, L Brands opened the first four U.S.-based La Senza stores at the Polaris Fashion Place mall in Columbus and the Easton Town Center mall in the same city; the Orland Square mall in Orland Park; and the Southlake Mall in Merrillville, Indiana.
L Brands completed its takeover of La Senza in 2007, and as of January 31, 2009 it had 322 shops in operation in Canada. But it has since closed more than 200 of those stores, reducing the total to 121 as of September 30, 2017. Other, non-company owned La Senza stores do persist outside of North America, however. According to the L Brands’ 2016 annual report, there are more than 200 La Senza “stores in 24 other countries operating under franchise and license arrangements.”
L Brands, as a whole, reported “net sales of $981.6 million for the five weeks ended September 30, 2017, an increase of 1 percent, compared to net sales of $971.4 million for the five weeks ended October 1, 2016. Comparable sales decreased 2 percent for the five weeks ended September 30, 2017. For September, the exit of the swim and apparel categories had a negative impact of about 2 percentage points and 3 percentage points to total company and Victoria’s Secret comparable sales, respectively. The September hurricanes had about a 1 point negative impact to September total sales. The company reported net sales of $7.015 billion for the 35 weeks ended September 30, 2017, a decrease of 4 percent compared to net sales of $7.328 billion for the 35 weeks ended October 1, 2016. Comparable sales decreased 7 percent for the 35 weeks ended September 30, 2017. For the 35 weeks ended September 30, 2017, the exit of the swim and apparel categories had a negative impact of about 5 percentage points and 8 percentage points to total company and Victoria’s Secret comparable sales, respectively.”
Preston explained that “The beginning of October will continue to focus on the Pink Wear Everywhere Bra and will transition to the Very Sexy collection later in the month.” She added, “we expect October total company comps to be down low single digits, which includes a negative impact from the exit of swim and apparel of about 1 point.” — NM
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