The Secret Of Underwear Brand Vitoria Has Been "Hit The Nail On The Head" Again.

Brand Victoria 's Secret

On Monday, Jefferies, the investment bank, issued a report on Monday that it lowered the rating of L Brands Inc. of its brand parent from holding to a big market and lowered its target price from $70 to $50.

Jefferies said, Victoria 's Secret Vitoria has too many secret competitors, including American Eagle Outfitters Inc. (NYSE:AEO) Aerie and so on.

The rise of the underwear market is becoming more and more dispersed. In addition, the L Brands Inc.'s bralette, due to the trend, has also depressed the profitability of the group, because the price of bralette is 60% lower than that of the ordinary bra.

Jefferies believes that the bralette bralette series has an impact on group profit of 10%, or about $0.07 per share.

Although the beauty business Bath & Body Works is still growing, Jefferies can not predict how long the business will last.

Jefferies's report is obviously very timely, because after the report was released, because of the fierce market competition, Victoria 's Secret Vitoria's Secret rival Agent Provocateur insider announced restructuring.

This week, the UK's luxury underwear brand Agent Provocateur, the controlling shareholder of the big spy company and the 3I Group PLC (III.L) of the UK private equity fund, said this week that the brand was restructured, including the suspension of the sub line brand L "Agent by Agent Provocateur".

The basic bra price of about 75 pounds L 'Agent was founded in July 2013 by the Agent Provocateur internal spy brand joined the famous Spanish movie star Pen lope Cruz and M Nica Cruz sister, the brand is the "Victoria" Cruz Vitoria secret brand.

Despite the high double-digit growth of L Agent, in view of the fierce competition in the market, the expansion of the brand is difficult to sustain. Not only L 'Agent is cut down, but also the price of the Agent Provocateur, the big spy.

Previously, the secret of Victoria 's Secret Secret Vitoria also had a similar strategy of price reduction, including the movement to focus on low price Bra. Besides, the brand of girl brand PINK could attack the low price range, and PINK's performance was obviously better than Victoria's s Secret Vitoria's secret.

The restructuring of the Agent Provocateur, the big secret agent, also includes closing 30% of the retail stores and reducing 30% of its headquarters, involving a total of about 40 people in all departments including design, sales, business and stores.

In the 2015 fiscal year ending March 28, 2015, revenue growth of Agent Provocateur Provocateur has dropped from 16.2% in the previous year to 61 million 700 thousand.

In the 2015 fiscal year, the sales of the same store in Agent Provocateur, the big secret agent, increased by only 4%, which means that the increase in revenue was mainly driven by new stores.

Now the brand has 111 stores in 29 countries and regions. Chief executive officer Fabrizio Malverdi Malverdi revealed that the independent stores and franchising shops will be concentrated in the largest market in the US and Europe next year. The brand expanded rapidly in the region in the past two or three years, but it was weak due to location errors and insufficient infrastructure support business.

At the same time, Fabrizio Malverdi will promote the retail development of brands in China and Asia, and will supply wholesalers for the first time from the autumn series.

Agent Provocateur entered the Chinese market in the fall of 2013. It not only laid the three largest luxury goods centers in the north port, but also infiltrated Chengdu and Guangzhou.

Fabrizio Malverdi declined to disclose the extent of the impact of the Agent Provocateur insider on luxury consumption, pointing out that the recent business highlights are self operated e-commerce websites, which have increased by 15% so far this year.

The annual performance of the Agent Provocateur Provocateur is expected to be released from the end of this year to the beginning of next year.

Data show that in the 2015 fiscal year, the brand recorded a core profit of EBITDA 1010 million, an increase of 5.2% over the previous year's 9 million 600 thousand pounds, but the increase was significantly lower than that of 2013 and 2014 in the two two fiscal year.

Pre tax profits fell by nearly 26% to 4 million 600 thousand per annualized year, mainly due to the strategic assessment cost of 727 thousand pounds and some asset writedowns during the year.

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The brand's bigger rival, Italy luxury brand La Perla, is also pushing China to expand.

The La Perla brand has been growing rapidly after its new boss, Italy Telecom tycoon Silvio Scaglia, since its holding two years ago. In 2015, its revenue grew by more than 25%. Silvio Scaglia, which is expected to accelerate to 30% in 2016, will rise from 150 million euros last year to 200 million euros.

At the end of last year, La Perla, the most expensive Tongluowan store in Hongkong, opened its fourth independent boutiques in the local brand, claiming that the brand without overexposure still maintained 35%-40% growth in China, and this year it will continue to add 3-5 independent stores in China.

La Perla has chosen the celebrity and the highest income Liu Wen endorsement in the Chinese market, and the latter has repeatedly been a secret show for Victoria 's Secret, Vitoria, but the secret of Victoria' s Secret Secret Vitoria has been operated by the agent in the Chinese market. It has missed Liu Wen's Chinese symbolic model. There will be other candidates in the market, and all of this is believed that the first secret store in Vitoria will be clear in the beginning of next year.

However, with the slowdown or recession of the two famous underwear brands, competition in the underwear market will undoubtedly become more intense in 2017. This situation will also spread to China. Before this, the producers of Wei Jeanne International (Holdings) limited or retailer EMBRY Holdings Ltd. and Fang Li Fang holdings have issued a negative earnings warning for the medium term performance, saying that the medium-term profits will decline significantly.