Young Consumers Are Likely To Put The Company In The Cold.

According to US media reports, some analysts predict that Vitoria's Secret parent L Brands (LB) will have a poor future performance. Bank of America Merrill Lynch analyst Lorraine Hutchinson predicted that the company's performance will not perform well and lowered its target price from $74 to $57 per share.

L Brands has fallen 24.53% in the past three months, and its market value is now 18 billion 760 million dollars.

Earlier, news came out that the company had laid off 200 people for restructuring its online and catalog sales. In February of this year, taylor swift CEO Sharen Turney left office. She worked as a CEO for over 9 years in more than 16 years. During her stay, she led the sales revenue of the company to grow from 70% to 7 billion 700 million dollars. brand The number one performance hero.

The analyst pointed out that the market challenges, the swimwear category and the direct mail were withdrawn. Clothes & Accessories The decision of the product will damage the company's revenue, and it will also face underwear including consumer preference for high cost performance and slow growth in sales, eroding profits.

Lorraine Hutchinson stressed that the decision to cut direct mail promotions is not the right time, because the core business of the company is facing enormous performance pressure.

Now the beauty show effect is losing continuously to consumers. Last year, the CBS ratings show fell by 32% compared with the same period in 2014.

Although the sports underwear recently launched by Wei is quite effective, the competition for similar products is fierce, such as the Gap brand Athleta and LululemonAthletica, which are more cost-effective. Some analysts pointed out that the focus on sportswear or selling more underwear could not make up for the loss of revenue of $525 million after the cancellation of related businesses.

Lorraine Hutchinson agrees that L Brands has the potential to expand internationally. At present, the group has withdrawn its right to operate in China, but the Group expects that its business in China will slow down when the company rearranges its management in China. In addition, tourism and political risks may extend the industry development plan. At present, most of the business of L Brands is in the UK, which means that the UK's off Europe situation may damage sales. Analysts also pointed out that the company's Beauty cosmetics category has product problems, and will also affect the overall international expansion. The reduction of tourist flow and the reduction of product category differentiation will affect sales growth.

Analysts Forecast Ltd had "significant risks", especially in the first half of 2017, which was related to the L Brands's cancellation of swimsuit categories. She believes there will be no signs of recovery until 2018.

Behind the billions of dollars worth of underwear business, there is reason why the company has begun to tremble for the trend. Despite its reputation as the sexiest store in fashion retailing, its popularity seems to be facing severe challenges in recent years. Analysts say that Victoria's Secret has nothing to offer except lace briefs.

20 years ago, according to the traditional mode of Wei Ming, there was no worry, but now Victoria's Secret has not set foot in the concerns of many millennials, such as gender identity, diversity, environmentalism, feminism and other popular topics. Today, it does not sell underwear with any value. It may not be cool enough and not sexy enough for the highly socialized Millennials. Young consumers may be totally neglected.