Victoria's Underwear Market Performance Is Affected By Bra Without Steel Ring.

The latest financial results released by L Brands Inc., a parent company, showed that last month, the company contributed $100 billion in sales to the group, down from 1 billion 567 million 500 thousand US dollars in the same period last year, due to restructuring.

The comparable sales volume of the company declined by 2% compared to the same period last year, narrowing compared with the 5% decline in the same period last year.

In a subsequent conference call, analysts questioned whether the company relied too heavily on the core product, the traditional steel bra.

Stuart Burgdoerer, the chief financial officer and executive vice president of the group, said there was no data showing that the sales of steel rim bras were on the decline. Meanwhile, the comfort oriented bra and sports bra had achieved super level growth.

The company has achieved two kinds of bra balance, and the bra business has achieved overall growth.

As of the third quarter of October 29, 2016, the key financial data of L Brands Inc. were as follows: net profit fell 25.8% to 1.216 billion compared to the same period last year, diluted by 42 cents per share net income, down 24% from the same period last year, operating profit of 283 million 600 thousand US dollars, down 16% compared with the same period last year; sales increased 4% to 25.8 billion compared with the same period last year; comparable sales (including same stores and online) increased by 2% over the same period, of which Victoria 's Secret decreased by 1% compared with the same period last year, and Bath & Body Works sales increased by 7% compared to the same period last year.

In February of this year, retail legend,

The chairman and CEO Leslie Wexner has returned to the mountains. Since he took over the post of CEO, he began to adjust his business: cut off the swimwear line, reduce marketing expenses, and concentrate resources on the core product line, especially the high price steel ring bra, in order to strengthen the foundation of brand growth.

(Buffett of the underwear industry), the 78 year old Leslie Wexner, who came to the mountains and kissed the secret of Vitoria. "The secret of Vitoria will restructure its business lines, simplify its operation structure and lay off two hundred". In order to continue the growth of the brand worldwide, the company and the parent company inevitably have to undergo a painful reform period.

Leslie Wexner told analysts last month that L Brands is currently at a turning point.

"We realized afterwards that we must make changes, which I wanted two years ago.

We had a lot of opportunities to make early decisions.

He said that with the growth of consumers and consumers, the aim is to target young consumers, such as bralette, which has a high popularity in the millennial consumer group (a underwear without a steel ring and a bra), and a sports underwear business that consolidates lagging behind.

Though welcomed by the millennial generation of young consumers, the price of the free steel bra and sports bra at $20 ~40 is far below the steel bra ($50 ~70).

L Brands expects net earnings per diluted share in the fourth quarter to be between 1.85~2 US dollars, down from US $2.15 in the same period last year, and lower than analysts' expectations of US $2.03, but L Brands has always been more conservative in forecasting.

After the release of this quarterly report, L Brands shares rose 2.5% to $69.64 per share.