Victoria’s Secret to close three of its Canadian stores
- Author: Eleanor Harrison Mar 02, 2019,
Mar 02, 2019, 0:40
Dozens of Victoria Secret stores in North America are facing foreclosure, following the lingerie chain's recent poor financial performance.
Victoria's Secret's same-store sales also fell during the holidays, dropping 3% during the quarter.
The company has lost 3.8 million customers over the two past years to rivals like Amazon and American Eagle's Aerie, according to an estimate from Neil Saunders, analyst at GlobalData Retail. "We have not met our own expectations for overall performance", L Brands CFO Stuart Burgdoerfer said on the company's conference call. L Brands said it closed 30 Victoria's Secret stores in 2018, already up from its average of 15 store shutdowns a year. On Thursday, L Brands' stocks dropped almost 7 percent. In November, Victoria's Secret's CEO resigned. It has plunged more than 40% in the past year.
- More than 50 Victoria's Secret stores will be closing across the United States and Canada, outlets report.
Competition in the lingerie industry has increased in recent years. "The outlook illustrates that the lingerie-sales struggle will persist until the retailer finds a way to reconnect with shoppers on price, product and image", said Bloomberg Intelligence analysts Poonam Goyal and Morgan Tarrant.
Big retailers also threaten Victoria's Secret. Auden bras will cost $22 and under.
The numbers say as much about what's been going on outside of Victoria's Secret as within it.
The company did not rule out ending the fashion show or using more inclusive marketing. They don't have a great option.
JCPenney said in a news release that it plans on closing 18 full-line stores this year, including three locations that had been announced recently, along with nine home and furniture stores.