The stock of the famous lingerie makers Victoria’s Secret’s parent company, the L Brands continued their constant decline which initiated a month ago. On Thursday, they went to the lowest point of the decade. At one point, the shares fell around 12%, at $17.61. Such prices haven’t been seen since December 2009. The shares were being traded at about 9% down. The rate of the stocks has declined by about 42% since last years.
Executives told an analyst on a phone call on Thursday that they will be releasing new products and better marketing prior to the holiday season to try and rejuvenate the ailing Victoria’s secret. According to the CFO Stuart Burgdoerfer, the response is great for the new product. He added that till now it hasn’t proven itself to be enough to overcome weakness in the lingerie department, including the heavy promotions from a year ago and their effect. Those promotions will continue till fall.
The same store sale of L Brand has gone down by 1% in the fiscal second-quarter. It was worse than the expected rate of growth which was expected to be 0.3%. Same store sales in Victoria’s Secret saw a decline of a total of 6% while the sales at Bath and body works rose by 8%. According to the assumptions of the analysts, same store sales were expected to drop by 3.9% and Bath and Body works sales were expected to rise by 6.3%.
The image that once boosted the sales of Victoria’s secret is now a liability for them. Customers are avoiding the hot pink, bejeweled and lacy lingerie and are choosing simple other brands offerings over them. L Brands have been trying to turn things around for Victoria’s Secret for quite some time now. Under this only they have decided to cancel the broadcast of their annual fashion show. They have also signed their first ever openly transgender model.
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