Underwear Overlord Is In Danger: Wei 2019 Sales In The First Quarter Closed 35 Shops Fell 5%

L Brands, the virgin parent company, released its first quarter results on Wednesday after its close. The group's total sales amounted to $2 billion 629 million, almost no growth compared with $2 billion 626 million in the same period last year, while net profit plunged 15% to 40 million 300 thousand dollars, but all exceeded analysts' expectations.

Among them, the same store sales declined by 5%, while Bath & Body Works same store sales rose 13%.

L Brands said that in the first quarter of this year, it closed 35 stores, adding only 1 direct retail outlets.

It is reported that in the past 10 years, the company has opened 820 stores, closed 673 stores, and sold 130 stores' management rights.

At the same time, the company did not stop the pace of international expansion.

Since its massive entry into the Chinese market in 2017, it opened new stores in Peru, France and Italy last year.

The company recently said it would change its fashion show for the year, suggesting that after years of market share being taken away by a rising star, it is willing to accept criticism.

"We are obviously not satisfied and are striving to improve our performance," L Brands said when referring to the results of the secret service.

The company pointed out that its comparable sales of underwear business declined, profit margins were hit by excessive discount, and the same store sales for young people's pink series were also declining.

Tariffs have become a top concern for executives.

L brand says L Brands says most of the products of Vitoria's Secret Beauty and shower and body care products come from the United States.

In addition, sports brands such as Nike, Adidas and Lululemon are constantly invading the underwear market. The first three underwear products occupy 0.2% of the market share.

This also indirectly indicates that the change of market trend and the continuous emergence of competitors are the result of declining annual performance.