The Largest US Market In The World Will Be Lost.

Whether from the attention of a big show every year, or should it be

In terms of sales performance,

Brand Victoria's Secret

They are already worse than before.

The company is losing its biggest American market.

L Brands (NYSE:LB), the virgin parent company, released its first quarter results yesterday. Its sales fell 7% to 24.37 billion, while same store sales fell 9%.

Because of the negative effects of the cancellation of swimsuits and clothing categories in Canada and the United States, its sales fell by 12% to $1 billion 533 million, while the same store grew by 14%.

Wei's revenue accounted for about 60% of the total revenue of the group, and the industry generally agreed that it was the facade and barometer of L Brands.

Compared with the first quarter of 2016, sales of L Brands increased by 4%, while same store sales increased by 3%.

In the four weeks ended April 29th, sales of L Brands group decreased by 2% to $719 million compared with the same period last year, while the same store sales fell 12% from the same period last year, far less than the 6.8% drop expected by Wall Street analysts.

After the news, L Brands closed down nearly 7% to $49.4 per share yesterday, and its market value has evaporated by 35% over the past year, with its market value of about $14 billion 180 million.

For the latest quarterly results, the group did not respond too much, but some analysts pointed out that the L Brands's weak monthly performance gave rise to doubts about the ability of L Brands to change its operation status. Since the cancellation of swimsuit and clothing category, its performance has not improved.

It is reported that after CEO Les Wexner decided to cancel the swimsuit and clothing category, L Brands lost at least $500 million in revenue.

Now, however, some analysts are pointing out that the brand competitiveness of young sporting underwear products is not optimistic when facing American Eagle's underwear brand Aerie and Amazon's newly launched underwear brand Iris Iris & Lilly.

In addition to the failure of the strategic reform, the performance of L Brands is also affected by the continuous reduction in the flow of department stores. With the gradual pfer of consumers to the online market, the negative impact of this phenomenon on the Bath&Body will deteriorate further, which will lead to another core brand, the business of Bath&Body Works will also be affected.

Last week, when an analyst went to the New York store in the secret store to find the reasons for the declining brand performance, there were three major problems in the store. They were too small, unclear, and priced too high.

Jefferies analyst Randal Konik said in a note to customers on Thursday that sales of underwear brands at the core of the company continued to slump, while the growth of young PINK series was slowing down. More and more data showed that the company was losing consumers.

Randal Konik predicts that the performance of L Brands group will continue to decline in the next three years, so it has decided to reduce the rating of L Brands to "sell".

In order to seek potential for growth in performance, the company is investing its vision in the Chinese market.

According to statistics, the annual sales of China's underwear market has exceeded 100 billion yuan. The annual growth rate of the underwear market is nearly 20%, which is higher than that of the textile and garment industry in the past ten years, with an average annual growth rate of 18%. In the whole market, women's underwear accounts for about 60%, and the market size is more than 600 billion yuan.

It is noteworthy that Italy's luxury underwear brand La Perla has increased by 40% in Asia, which is largely the contribution of Chinese consumers.

According to the world clothing and shoe net, although the sale of underwear products has not been sold in stores in China, however, the amount of purchase made by Chinese consumers every year is astonishing. After all, the purchasing power of the Chinese audience, which is covered by the secret show every year, can not be underestimated.

After recognizing the great potential of the Chinese market, the company has regaining all the agency power in the Chinese region and officially launched the Chinese market. In March, it opened two flagship stores in Shanghai and Chengdu.

In order to curry favor with Chinese consumers, the 2017 underwear show will also be held in Shanghai, China. This will be the first time that it has held a press conference in Asia, but no specific venue and time have yet been announced.

Some analysts pointed out that because of the late arrival of China in the Chinese market, especially in the case of China's complex underwear retail market, especially in the Chinese consumers' perception of brand, there is no advantage in terms of product design or pricing in the Chinese market.

After all, it is a relatively small brand in China, regardless of total store size and revenue. It will take longer to save its performance.

Behind billions of dollars in underwear business, it is facing severe challenges to attract young consumers.

Some analysts say that although the US is still the first brand of underwear in the United States, it has come down from the altar, and it can't blame anyone else. It is too self complacent. It is not so slow as to say that it is slower to respond. It has to be said that the 80 year old Group founder and chairman, Leslie Wexner, is still part of CEO.

"In addition to the lace little underwear, the company did not provide any more.

"Maybe this is why more and more young consumers no longer buy" sexy "accounts.

More interesting reports, please pay attention to the world clothing shoes and hats net.