Lingerie Giant Mom Stock Prices Plummeted Sexy And Mid Price Positioning Dilemma.

After announces the sale in June, the underwear giant Victoria "s Secret", Vitoria's Secret (VS) parent company L Brands Inc. (NYSE:LB) shares reappeared sharply.

In the first 5 weeks of July 7th, VS same store sales fell again, down 1% from 2% in May, and this performance was also based on a weak base of 17% over the same period last year.

The underwear giant's weak performance also quickly met the market punishment. L Brands shares plunged more than 7% after the market plunged nearly 3% before the launch. The drop in the time of 9:39 AM EDT was extended to 8.29% at $7%.

By the end of Thursday, the US underwear and beauty giant shares had fallen by 39% this year, while the SPDR S&P Retail ETF of retail shares rose by 8.8% during the same period, while S&P 500 also rose 3.8% over the past six months.

At present, the positive performance of L Brands is entirely dependent on the group's beauty brand Bath & Body Works, which has recorded double-digit growth in 10% consecutive months in 5 and June after falling into a growth stagnation crisis. Meanwhile, it has protected L Brands from 3% of the same store sales growth in the first 5 weeks of July 7th, and is slightly more adventurous than Bath.

The expected 2.9% increase.

During the reporting period, sales of VS entities in the same store increased, increasing from 2% in May to 6% in June.

American group management said at a conference call that the total inventory rose due to the calendar effect, but it was in line with expectations.

The market is still worried about the support of VS parity girls' sub line brand PINK business, which continued to be negative in June.

L Brands management said it will launch new products for the brand this month, focusing on the revitalization of the brand.

Since March, PINK has not been able to grow for 4 consecutive months. The annual sales volume of PINK, which is close to US $3 billion, has been weak for the first time in the 2017 holiday season since its establishment 16 years ago.

A number of analysts have pointed out that after 5 years of rapid growth, the number of analysts has reached the top. However, PINK Denise CEO Denise Landman has been known in the early part of the world. Despite the fashion mistakes, it has shown signs of normalcy.

The weak performance of PINK and VS is mainly due to the embarrassing product positioning of VS.

Among them, the positioning of terminal price and sexy "human set" lags behind the current trend of lingerie industry advocating health and sports. Although VS has tried to follow the trend, the gross profit margin of new products, and the brand image that may affect the brand marketing for several years has been completely overturned. Finally, L Brands has decided not to keep up with the trend and continue its sexy strategy.

However, in the same store sales slump, L Brands in June sales gross profit margin also continued to decline, while worse.

Performance.

Randal Konik, a retail analyst at Jefferies, who has been singing empty to L Brands, has previously said that the situation of discount and sacrifice gross margin shows that VS is saving customers at all costs but proves that customers are moving to other brands. Moreover, it is not advisable for the brand to sacrifice short-term pricing power and brand value for short-term demand.

Randal Konik also reported to investors directly, VS and PINK are being eroded by American Eagle Outfitters Inc. (NYSE:AEO) girl underwear brand Aerie.

4, 5 years ago, Aerie began to adopt a marketing strategy that showed women's real body and advocated self affirmation. The advertising and social media promotion of the brand were deeply rooted in modern women's hearts.

On the contrary, VS and PINK have been relying on the sexy angel models far away from the public for many years to spread their brand image. However, it is out of date to focus on pleasing men now.

In recent years, dozens of underwear brands are focusing on different demands.

Amazon.com Inc. (NASDAQ:AMZN) Arabella and other large retailers own brands also provide cost-effective products, consumers face unprecedented rich choice, invariable VS and PINK PINK naturally easy to forget.

In the 5 weeks before July 7th, L Brands recorded a sales of US $1 billion 282 million, an increase of about 6% over the same period of 1 billion 213 million a year ago. In the first 22 weeks of the current fiscal year, the company recorded a total sales of 4 billion 760 million US dollars, an increase of about 8% over the same period, and a 3% increase in the same store sales period. It benefited mainly from the same store sales growth of Bath & Body Works 9%, while VS brand zero sales growth in the same store.