Victoria’s Secret has built a worldwide reputation for its premium lingerie and beauty products for women. The 2010s represented a period of growth for the company that managed to open more than 1,000 stores across the United States. However, recent years are far from exhibiting a glorious time for the lingerie manufacturer. The latest economic reports show that Victoria’s Secret is struggling with sales and store traffic and the decision to cut down on heavy promotions didn’t help.
On Thursday, L Brands which is the sole owner of the famous American premium lingerie manufacturer, saw its shares drop by 15.8%. This event marked the largest decline of the company since 2008 that happened over night. Moreover, the parent company is expecting a 20% tumble of the same-store sales during the month of February. L Brands which also created the Bath & Body Works brand did not have enough valuable assets to describe the rest of the year as anything else but a hard time for the lingerie business.
L Brands tried to explain this massive decrease in sales as a major repercussion of ending the swimwear and apparel line from Victoria’s Secret last year. On the other hand, the present products are not showing much potential either. Some industry experts are of the opinion that the stores are no longer relevant for the young consumers. While the company keeps pushing the image of sexy women that have to rely on underwire and push-up bras to manage a flattering figure, the public is looking for something else.
Younger shoppers are now searching for comfort wear to the detriment of a sexy look. On the other hand, bralettes and sports bras may offer a more practical choice, but the lack of complex system renders them low prices only. The chairman and CEO of L Brands, Les Wexner, helmed the brand with a firm hand lately. However, even though he tried to draw the core Victoria’s Secret brands away from a culture of heavy promotions, this strategy backfired.
The news comes as a surprise for the company, as it invested heavily in promoting the lingerie brand. It was only last November when the company held for the very first time a fashion show in Paris. The event enjoyed great success thanks to the performance of Lady Gaga and Bruno Mars. However, experts believe that the runaway Angels are no longer appreciated by the public. More than that, they actually have to deal with an image problem now.
Image source: 1