The Two Quarter Decline Is Looking For New Growth Points.

Gradually losing the US market.

The performance of Victoria's Secret is declining and is actively looking for new growth points.

According to the world clothing and shoe net, in the three months ended June 29th,

The sales of parent L Brands Group continued to decline 4.7% to 2 billion 750 million US dollars compared with the same period last year, which is the second consecutive quarterly decline in the group, and its sales decreased by 7% to 2 billion 477 million dollars in the first quarter.

During the period, group net profit dropped by 45% to $189 million, and comparable sales, including electricity providers, fell by 8% over the same period.

Among them, the decline in the performance of the company has been declining, and its sales in the US and Canada dropped 14% to 1 billion 646 million US dollars in the quarter, a further increase from the 12% in the first quarter. Sales of Bath & Body Works increased by 6% to 860 million US dollars compared to the same period, while the sales of Bath and Body Works in the overseas area increased 14.2% to 113 million US dollars.

The picture shows the main performance data of L Brands in the second quarter.

The picture shows the main performance data of L Brands in the first half of fiscal year.

As of the end of the reporting period, there were 1174 stores in North America and Canada, and Bath & Body Works had 1698 stores. There were 49 stores in the overseas area, including 2 new flagship stores newly opened in Shanghai and Chengdu in the first half of this year.

Leslie Wexner, chairman and chief executive officer of L Brands, said after the publication of the earnings report,

Retail sales are constantly changing. L Brands is currently at the critical turning point of reform. The decline of group performance is mainly caused by the negative impact of the core brand's secret exit from swimwear business.

It is noteworthy that the sale of underwear products dropped by 14% in May after the report said that it had pulled out of the bathing business.

Amie Preston, chief investment relations officer of the company, said earlier in a letter to investors that the company's performance fell to "the lowest expected value".

In view of the negative impact of the swimwear and most of the clothing business on the combined sales of about 7%, L Brands decided to withdraw its swimsuit business in June last year.

According to sources, the decision to reduce the industry chain was made after the departure of CEO Sharen Turney, which she once said was the biggest regret for her.

Some analysts pointed out that despite the fact that Wei Ming has always been a synonym for "sexy" in the fashion retail industry, its annual show is also one of the brands that are most concerned by the industry and consumers every year. However, the attractiveness of Wei Mei to young consumers is gradually declining, and its iconic sexuality seems to face a severe challenge.

According to Listen First Media's survey and statistics of brand attention on social media on the day of last year's Paris's "Wei Mei Da Xiu" held in Shanghai last year, the brand related organic dialogue decreased by 34% compared with last year, and the search volume of related topics also decreased by 12% compared with the same period.

20 years ago, there was no worry about the traditional pattern of the visa, but now it has not been involved in many millennial concerns, such as gender identity, diversity, environmentalism, feminism, and other hot topics.

Today, the secret of Vitoria sells underwear without any value. It may not be cool enough and not sexy enough for the highly socialized Millennials.

Some analysts say that if Abercrombie wants to cater to the market environment of the millennial generation and avoid the same fate as the once cool and sexy Abercrombie & Fitch, it must create other values besides sexy for consumers.

According to a survey report, "big chest is sexy" after 2014 was overtaken by "natural chest", sexy is being redefined by young people.

In addition, it also faces the competition between fashion business and price.

Such as Amazon's newly launched Iris & Lilly parity underwear brand, etc., the young consumers may be completely ignored.

Leslie Wexne has admitted that the popularity of sports products such as sports underwear, minimalist steel ring underwear and so on is too slow, causing consumers to flow to traditional sports brands such as Lululemon and Nike.

In order to find new growth points, the US market, which has fallen into a stagnant market, began to attack the Chinese market in an all-round way this year.

It is reported that the 2017 secret big show will be held in Shanghai. This will be the first time that Wei has held a press conference in Asia, but the specific venue and time have not yet been announced.

Data show that China's underwear market annual sales of more than 100 billion yuan, and the annual growth rate of nearly 20%, higher than the textile and apparel industry in the past ten years the average annual compound growth rate of 18%, while in the overall market, women's underwear accounted for about 60%, the market size of more than 60 billion yuan.

La Perla Asia's turnover grew by 40%, to a large extent the contribution of Chinese consumers.

It can be seen that the huge potential of China's underwear market has made it impossible to ignore L Brands, which once had no interest in the international market.

In terms of products, Amie Preston revealed that in July this year, the secret of Vitoria has launched a T-shirt bra called "Delivering Fashion", while the sister series Pink has launched the "Wear Everywhere" underwear, but it is not yet able to predict whether the new product can boost sales.

Stuart Burgdoerfer, executive vice president and chief financial officer of the company, said that L Brands expects revenue growth of 10% this year and will focus on controllable business, such as inventory management and control costs.

However, the industry has different attitudes towards it. Affected by the depressed retail market, some analysts pointed out that Vitoria's Secret parent company L Brands is worried about its future performance, and there will be no signs of recovery until 2018.

In addition, the decline in Vitoria's secret performance also dragged down its biggest supplier, the performance of the Jeanne group.

It is reported that Virginia has been working with L Brands for 15 years, and orders account for 35% of the company's total annual sales.

In the fiscal year ending March 31st this year, sales of Virginia fell 8% to HK $4 billion 677 million.

After the release of the earnings report, the shares of L Brands group fell by 6% to $37.16 a share yesterday, and its stock price has fallen 18% in the past three months, with a market value of about 11 billion 300 million US dollars.

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