Whether Or Not It Will Fall Ill Is That The Stock Price Has Fallen By 40% This Year.

The crisis of Wei Ming came one after another.

L Brands Inc. (NYSE:LB) has so far not been able to break the Victoria "s Secret Secret" Vitoria's Secret (hereinafter referred to as VS) offline passenger flow weakness depends on price promotions and thus compacts the causal cycle of earnings. The group lowered its annual profit forecast today when it released its first quarter results, and again caused analysts to criticize the 80 year old group chairman and chief executive officer Les Wexner with "straight men" thinking adhering to the "stale" line and refusing to change.

L Brands Inc. (NYSE:LB) fell more than 7% after Wednesday, and as of Wednesday, the stock fell 43.1% in 2018, showing the bottom of the S & P 500 index.

The market value of L Brands Inc. has evaporated 65% since 2015.

Although the annual sales of more than 7 billion US dollars, VS is still the largest in the US.

Specialized retailers, but the loss of growth is a crisis. The brand crisis has lasted for six quarters, from the end of clothing and swimsuit product lines to the need to reorganize the beauty business, to the VS underwear core underwear category, and the recent problem of the girl brand PINK.

In the first quarter of May 5th, the comparable sales of VS increased by only 1%. After the direct sale dominated by e-commerce, the same store sales of physical stores dropped by 5%.

PINK has been experiencing negative growth since the start of March. Analysts believe that American Eagle Outfitters Inc. (NYSE:AEO)'s underwear brand Aerie Aerie is embezzling PINK's market share. Last year, the total sales of Aerie exceeded $500 million.

In the face of the decline of VS's core underwear business, the management of L Brands Inc. is still at a loss. They just follow the trend of "bralette (thin section without steel ring Bra") in recent years and decide to reduce the supply of products because of the fact that bralette can not make up for "small profits".

Victoria 's Secret, Vitoria's Secret parent L Brands Inc., the investor relations page banner is a tall, slim and romantic long curled Angel model.

The most fundamental problem is demand.

VS's main line and PINK have continued to rely on the "sexy angel" models far away from the public for many years to disseminate brand information but fail to see the way to please men.

Cora Harrington Harrington, the American underwear blogger, points out that the definition of "sexy" is no longer confined to tall, thin and romantic curly hair. "Now sexy styles are various, and the sexy sex presented by women is out of date."

At present, the social and cultural background is also not conducive to the inherent image of VS. The Candace Corlett, WSL Strategic Retail, a consultancy, questions VS VS Management: "have they not heard of the #MeToo campaign?"

In addition, in recent years, dozens of underwear start-ups, such as Adore Me, ThirdLove and True&Co., are pouring into the market. Amazon.com Inc. NASDAQ:AMZN (Arabella) and Gap Inc. (NYSE:GPS), the brand of big retailers such as Arabella and Gap, can also provide products with high cost performance. Consumers are faced with an unprecedented choice.

Against this background, VS is in the United States and Canada.

More than 1200 stores have also become a burden.

L Brands Inc. now expects EPS EPS to decline from US $2.95-3.25 to US $2.98, with a new median of $2.85 and a market expectation of $EPS.

Net profit fell sharply from 49.5% to 47 million 500 thousand dollars in the first quarter, and EPS half was also reduced from $0.33 to $0.17, still better than the market expectation of US $0.15.

Gross margins dropped by 110 basis points to 35.9%, and operating margins dropped by 270 basis points to 5.9%.

Net sales rose from 7.8% to 2 billion 626 million dollars last week, better than the US $2 billion 580 million forecast.

Comparable sales 3% increased by 2% compared to market expectations, and Bath & Body Works rose by 8%.

L Brands Inc. expects to record US $EPS in the two quarter, far below the combined US $0.40 forecast of FactSet.