Victoria's Secret closing 250 stores

Victoria's Secret closing 250 stores

And even as some states move to reopen, many Americans are hesitant to go back into brick-and-mortar establishments.

"We continue to believe Victoria's Secret sits in the interesting position of being one of the largest brands in the history of time, and yet one that, for all intents and purposes, does not make money", BMO analyst Simeon Siegel wrote in a research report.

L Brands (LB), the parent company of Victoria's Secret and Bath & Body Works, is planning on permanently closing hundreds of retail stores under the two brands.

At Victoria's Secret, total sales tumbled 46% to $821.5 million.

Victoria's Secret's parent company said Wednesday, May 20 it plans to permanently close approximately 250 stores in the US and Canada in a commentary alongside its first-quarter earnings report.

Chief Financial Officer Stuart Burgdoerfer said in an earnings call Thursday that it was a "very significant decision" that is meant to "strengthen" Victoria's Secret.

L Brands' plan to close stores is just the latest sign of the devastating toll the health emergency is taking on retailers around the world. The brand has roughly 1,700 stores in North America.

L Brands, which also owns the Bath & Body Works chain, saw sales decline 37 percent in the quarter ended May 2. It expects its sanitizer products to grow into a $300 million business this year - up from $100 million last year.

Other established brands have taken a hit too, such as Neiman Marcus and J. Crew, both of which filed for bankruptcy in early May. The Ohio retail company's sales declined by almost 40% for the first quarter of 2020.

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