Wei Self Rescue Underwear Brand La Senza

In the case of Victoria 's Secret, Vitoria's secret has no obvious signs of recovery, the American underwear giant L Brands Inc. (NYSE:LB) has again launched a knife and cut arm to save itself, which has been closed since last month and has a 132 year history of high-end.

After the brand Henri Bendel, on Thursday, the company announced that it would sell high-end underwear brand La Senza.

After two months of disclosure of monthly results, it announced the streamlining of the brand portfolio. It showed that L Brands Inc. had failed in the restructuring of the company and had to make up for the previous mistake through the two reorganization.

According to the group, La Senza expects to earn $250 million in 2018, but its operating loss is $40 million, and the brand has 126 self operated stores in the North American market.

There are 188 non self run stores.

The market is in favor of the La Senza brand, which will ease the declining profitability of the core brand and the serious erosion of group profits by restructuring and investment costs.

Benefiting from the above news, as well as the re emergence of the same store sales in September, L Brands Inc. shares surged by 13.7% on Thursday, but with the three largest indexes of the US stock market falling and investors returning to rationality, the L Brands Inc. Inc. closed sharply narrowed to 5.93% US $30.21.

Sanford C. Bernstein analyst Jamie Merriman said that the continuous stripping of two non core brands showed that L Brands Inc. was paying attention to improving profitability and taking the necessary change measures. She also predicted that the withdrawal of La Senza would increase the operating profit of the US giants by 3%.

In 2007, L Brands Inc. bought the Canadian underwear brand La Senza for about $700 million, and in the current situation of the brand, the company lost all of its business.

As of the first 5 weeks of October 6th, L Brands Inc. earned 1 billion 58 million dollars, an increase of 7.8% over the same period of 981 million 600 thousand a year, of which 5% of the same store sales increased. Although it reappeared in the same store sales growth, the growth rate was only 1%, while sales in the same store were still difficult to reverse for a long time, while sales in the same store decreased by 2%.

The beauty brand Bath & Body Works BBW (hereinafter referred to as "BBW") continues to shoulder the heavy responsibility of supporting group performance. In September, the same store sales rose 13%, and the same store sales growth of the entity stores also increased.

Randal Konik, a Jefferies analyst at the US beauty and apparel giant, said in a report on Thursday that the news of La Senza is good, but the main problem of L Brands Inc. is that competition is increasing, resulting in high inventory prices, which will lead to a continuous decline in the company's profit margins.

Although the image and positioning of the largest brand in recent years have been criticized constantly, consumers are also using the most practical action to patronize their competitors to reflect their needs and aspirations, but L Brands Inc. is still unable to keep up with the thinking and make radical reforms.

Since December 2016, the comparable sales of the brand can only grow in 6 months, and sales in the last fiscal year have dropped by 5%.

Management has resorted to reducing sales and maintaining sales, which is the norm. The profit level of brands and groups is decreasing.

As the PINK business also began to fall into recession recently, there was no hope that the whole business could be turned short in the short term. L Brands Inc. Inc. lowered its annual profit forecast again when it released its two quarter earnings in August. At that time, the group also announced that the chief executive of PINK would retire soon.

In addition, the #Metoo campaign also completely knocked down the American underwear industry.

Rihanna, the pop star Rihanna, said last month that her personal underwear brand Savage x Fenty, the first show, hopes to change the US dominated by Wei.

It promotes social acceptance of various forms and encourages women to take a positive view of their bodies and deficiencies.

"Women wear underwear just to please themselves," Rihanna, Rihanna, told reporters. "It's hard to remind people of the tall, slim" angels ", and the long wave models of the annual show.

More reflecting the building's positive trend, when the August announcement was announced in September, the rare decision of the virgin began to close the store.

Data show that in the beginning of the fiscal year 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 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.

In the two quarter, the group's chief financial officer, Stuart Burgdoerfer, announced that it would close 20 stores in the current fiscal year.

The group has closed 6 stores in the North American market, but plans to add another 3.