Victoria's Secret owner plans store closures in U.S., Canada

Victoria's Secret owner plans store closures in U.S., Canada

On Wednesday, its parent company L Brands reported fourth-quarter earnings, same-store sales at Victoria's Secret were down 3%.

The parent company of Victoria's Secret is pulling itself up by the bootstraps after it met with bad sales during the holiday season, through the closing down of more than 50 underperforming outlets in North America.

The brand has struggled in recent years - sales have slipped, and its provocative ads are being criticized by some as being tone-deaf in the era of #MeToo.

Gap, JCPenney, and Victoria's Secret announced more than 300 store closures over the course of 24 hours this week. "And we are intensely focused on improving results". "Comparable sales performance for the closing stores was significantly below the remaining store base and these stores operate at a much higher expense rate given the lack of productivity". The company's other flagship brand, Bath and Body Works, did well. Burgdoerfer credited the strong performance in part to White Barn candles into some new and existing stores.

Analysts on average had expected the company to report quarterly adjusted earnings of $2.07 per share, on revenue of $4.88 billion, according to IBES data from Refinitiv. This marked its 16th consecutive quarter of double-digit positive growth.

The lingerie company said it will shutter the locations this year, reducing its North American footprint by 3 percent. Analysts had expected sales of $4.88 billion, Total sales at Victoria's Secret were $2.531 billion, down from $2.668 billion previous year. "That's what it is", he said in the interview.

L Brands stock was trading down eight percent on Thursday.

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