The Signing Of The Virgin Silk Underwear Show Has Begun, But The Sale Of Its Sales Is Still Undermining.

Victoria 's Secret underwear show is pointing to the trend of the times

The more downturn, the more discount, the first brand of global underwear.

(hereinafter referred to as "Wei Ming") performed worse in August, while the same store sales plunged 5%, far behind the 3.8% decline expected by the market. Apart from online channels, the drop in physical stores was as high as 9%, continuing the worsening trend since May.

Under the Trump tax cuts and the strong growth of the US economy, the L Brands Inc. (NYSE:LB) is the United States in the past year.

Worst performing, the company's share price continued to hit a 8 year low and investors could not see any hope of recovery from the current situation of the brand.

If it is not the beauty business Bath & Body Works (hereinafter referred to as "BBW") hard to support, I believe that "bankruptcy" comments may appear.

In August, BBW recorded a 15% strong sales growth in the same store, of which 14% of the entity business grew in the same store, which barely stimulated the sales growth of L Brands in the same month of 1% in 8, excluding the electricity supplier. The beauty and underwear giant of the United States dropped 2% in the same store in August.

As the BBW performance far exceeded the expected 5% sales growth in the same store, L Brands Inc. Inc. did not slump again after the announcement of the August data, maintaining a narrow range of shocks.

As of August September 1st, L Brands Inc. sales increased by 1.7% from $842 million 100 thousand to $856 million 300 thousand.

LB founder, Leslie Wexner and Millard Drexle, two US retail giants, are in the same boat.

The crisis of L Brands Inc. is not only reflected in the "Wei Mei" brand, but also includes Pink, as the average sub line brand of the main consumer group, Pink Pink keeps on double-digit growth all year round. However, the brand has declined in recent years, and there is no sign of improvement.

Pink CEO Denise Landman at the end of August in the two quarter earnings report frankly stated that Pink Pink business continued to slump, the same store sales in the number of declines, which is pulling out of the swimsuit business has a negative impact on 2%.

She said Pink is trying to make up the business by moving Bra.

In the doldrums, Denise Landman will retire before the end of the year. Instead, it will be Amy Hauk, the BBW product development and business president, who joined the group in 2008.

In the two quarter earnings conference, Stuart Burgdoerfer Burgdoerfer announced that it would close its stores in the current fiscal year.

The group is already in.

6 stores have been closed, but 3 new ones are planned.

Data show that in the first fiscal year of February 3, 2018, the L Brands Inc. Group operates 984 U.S. secret stores, 140 Pink American stores, 39 Canadian secret stores and 7 Pink Canadian stores. The total number of stores in the North American market is 1170.

In the first 7 months of fiscal year 2018 as of September 1st, the number of stores in North America dropped to 1164, and all the stores closed in August, closing 6 U.S. stores and 1 Pink Canadian stores, and 1 new US stores.

Randal Konik, a Jefferies analyst at the investment bank, said earlier that the value of the brand has gone bankrupt, and that the value of Pink brand is going bankrupt, and that Pink is in the early stage of the long recession.

He also sniffed at the strong BBW business, thinking that its cyclical strength will eventually slow down, while BBW can not support its entire group.

By the 2017 fiscal year ended February 3rd, L Brands Inc., which earned 12 billion 632 million 400 thousand US dollars, now has a market capitalization of less than 8 billion US dollars, even though some investors think it is less than 9 times P/E now.

However, if the core data of the Group continues to plummet, its sales rate may decline further.

In particular, investment in the Chinese market will be a black hole for group profits.

Quarterly results released in August 22nd showed that L Brands Inc. EBIT fell 40.6% to 129 million US dollars in the two quarter, 217 million 100 thousand US dollars in 2017, and 4.3% profit margins in EBIT, a 356 basis point drop in the same period last year. During the period, the group lost a net profit of 28.7%, falling from 138 million 900 thousand US dollars to 99 million 34 thousand dollars. During the operating profit period, it dropped to 24.2% dollars to 228 million 100 thousand dollars.

Because of the gradual abandonment of consumers, the brand had to sell discounts all year round. The EBIT profit margin of the brand has fallen by 1000 basis points, even though the brand can still generate 900 dollars in the scale effect.

During the reporting period, the operating profit margin of the brand declined by 480 basis points to 6%.

The American giant ignored the success of American Eagle Outfitters Inc. (NYSE:AEO)'s lingerie brand Aerie Aerie.

The legendary and Big Mac, now from products to marketing, from price to word-of-mouth, are being intensified by consumers.