Vitoria'S Secrets Continue To Be A Hopeless Recession

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Brand Victoria 's Secret

(VS) continued hopeless recession. In January 2019, the brand recorded a 1% decline in its same store sales. Despite sharp improvement in the chain, sales in the same store still dropped 8%.

What makes the market unexpected is body care.

Bath & Body Works (BBW) reclaimed zero growth in January, while the entity store recorded a 4% decline in same store sales.

Jay Sole, an analyst at UBS, said in its report that the bank observed a significant increase in the promotion of VS in January, which is usually a response after the sale of branded products, which is obviously unfavourable to the L Brands Inc. (NYSE:LB), which relies entirely on VS VS to push up the valuation. The latter recorded a 0.77% decrease of $26.92 on Thursday.

In the past three years, with the rise of feminism and the voice of social media, the women of VS have completely fallen into the trap of satisfying the sexy values of men. In addition to being accelerated by the American Eagle Outfitters Inc. (NYSE:AEO)'s underwear brand Aerie, they have accelerated the erode of the market share. Third, Love, Lively, Adore, Love and so on, are also relying on social media's newly established underwear brand. They also accelerate the biting of brand names, not only in product competition, but also by the co founder and CEO of the company, who even bought the New York Times full page announcement and published an open letter attacking the values.

Telsey Advisory Group analyst Dana Telsey pointed out that in 2019, VS was the key pitional year. Under the turmoil of management, the company also claimed to reenter the swimsuit industry, and in 2016, it was precisely because of its withdrawal from swimwear that VS entered a continuous recession.

As the first big voice of VS in the past three years, Jefferies analyst Randal Konik said VS's problems may be more difficult than most investors' awareness, because the brand has deeper problems.

Another big "empty singer", Tang Xiaotang, analyst at No Agency, said the recession of VS is far from over. It is hard to see any bright spot before the brand chooses to balance its scale, profits and firmly change its output of values.

However, there are also analysts who are optimistic about L Brands Inc..

Ike Boruchow, an analyst at Wells Fargo, said that L Brands Inc. was its preferred retail unit in 2019, but he suggested that the group should close some VS stores and focus more on improving profitability.

L Brands Inc. is a poor performance of the S & P 500 index in 2018, just better than the Coty Inc. (NYSE:COTY) coco group, which slumped nearly 70% in 2018, while L Brands Inc. fell 57.4% in 2018.

However, as of Friday's closing, Coty group's share price has rebounded nearly 50% this year. After Friday's announcement of its expected quarterly results, the company's stock price jumped more than 30%, while L Brands Inc. Inc. performance lost again. So far this year, less than 3% of the increase has been running up 8.03% of the S & P 500 index.

According to the data VS, the US market in January closed sharply to 21 stores, from 12 to 978, 957 to BBW, and 8 to the United States. As of February 2nd, 2943 stores in the group were 178 fewer than in January 1st, of which the Henri Bendel and La Senza business have resulted in a net reduction of 153 stores.

Randal Konik said that L Brands Inc. still had a 50% drop in space. He also said that the sales of the VS parity L brand would be 1/3 to 2 billion dollars.

PINK was once the pride and growth engine of VS. However, the target audience of the brand is not only far away from the brand, but also the main objection of the brand in social media.

As of the four quarter of February 2nd, L Brands Inc. recorded an increase of 3% in the same store sales, and the 13% increase in BBW contributed to all growth.

Excluding the electricity business, the American underwear and beauty giant sales fell three in the 1% quarter, while the growth rate of BBW 8% failed to offset the decline of VS 7%.

In January, sales of L Brands, Inc., fell from $1 billion 40 million a year earlier to $780 million 100 thousand, while sales in the fourth quarter increased by 0.6% to $4 billion 852 million 300 thousand, and sales increased 4.8% to 13 billion 236 million 900 thousand US dollars in the year, and 12 billion 632 million 400 thousand US dollars in the 2017 fiscal year.

At the end of this month, L Brands and Inc. will issue four quarter and full year results.

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