Wei'S Performance Is Disappointing, PINK Sports Underwear Business To Achieve High Unit Growth

In November 20th, Victoria s Secret, the American fashion group L Brands, released the key financial data for the third quarter of the 2019 fiscal year in Vitoria.
During the quarter, the sales performance of the "core" brand as the core brand remained underperforming. The net sales volume of L Brands group decreased by 4% to US $2 billion 677 million compared to the same period last year, which is 2% lower than that of the store sales, and the net income per share is US $0.02.
However, taking into account the Thanksgiving and Christmas in the fourth quarter of this year, and the new CEO John Mehas and Pink CEO Amy Hauk are strengthening the brand marketing, and narrowing the distance between the brand and the core consumers, L Brands has great confidence in the fourth quarter of this year. It is estimated that the net earnings per share in the fourth quarter will be 2 dollars, while the net income expectation for the whole year of fiscal year 2019 will also be raised to 2.4 US dollars.
After the news, the stock price of L Brands fell 7.51% to $15.89 per share in November 20th, but the share price rebounded in the after hours trading.
During the quarter, the number of stores and online businesses declined, which was 8% lower than that of store sales, while online sales fell by 6% over the same period. The total sales volume in the three quarter was 7.6% to 1 billion 412 million dollars compared with the same period last year.
By contrast, the PINK has performed well, and sports underwear business has achieved a high number of units, which is also less than the decline in sales. In addition, L Brands's natural bathing brand Bath & Body Works has maintained steady growth, with sales rising 11% to 1 billion 64 million US dollars over the same period, a year-on-year increase of 9% in sales, a 5% increase over the same period last year.
In addition, in the third quarter, the net sales of the L Brands Greater China market declined and the operating deficit expanded slightly in the past quarter of.
With the development of e-commerce, people's underwear needs are becoming more and more diversified. Some new underwear brands such as Savage x Fenty, Aerie, ThirdLove and so on, which are advocating diversity and inclusiveness, are beginning to rise.
In March of this year, L Brands's radical investor, hedge fund Barington Capital even asked the group to divest the secret, or split the Bath & Body Works into the market.
In order to speed up the growth of business, L Brands has made a series of reforms in recent years:
Closed the 53 poor stores in the US.
Exchange of blood for management. Hire Tory Burch former brand President John Mehas as the chief executive of the company, and appoint Amy Hauk, director of Bath & Body Works sales and product department as the new chief executive officer of Pink.
Stop playing the annual show through the TV network.
In order to demonstrate the inclusiveness and diversity of the brand, it also hired the first cross sex model to shoot the blockbuster.
In September this year, during the L Brands annual investor conference, L Brands announced a profit making plan for the recently sluggish brands, including: brand new, more inclusive brand strategy, new store experience, and marketing reforms that are still being discussed, helping to narrow the distance between the brand and the core consumer.
As of November 2nd this year, the key financial data for the third quarter of the L Brands2019 fiscal year are as follows:
Net sales decreased by 4% to US $2 billion 677 million compared to the same period last year, which is 2% lower than that of store sales.
Gross profit fell 6% to 958 million U.S. dollars over the same period last year.
Operating profit fell 38% to $96 million 300 thousand.
Net profit fell 87% to $5 million 700 thousand.
Net earnings per diluted share fell 88% to $0.02 per share over the same period last year.
By brand:
Victoria 's Secret: total sales decreased by 7.6% to 1 billion 412 million US dollars compared with the same period last year, compared with 8% year-on-year sales, while online sales decreased by 6% compared with the same period last year.
Bath & Body Works: sales increased by 11% to US $1 billion 64 million over the same period, a year-on-year increase of 9% compared with the same period last year, which is 5% higher than that of store sales.
L Brands2019 expects the fourth quarter of fiscal year:
The net income per share in the fourth quarter was about $2.
Net income per share for the 2019 fiscal year is about $2.4 per share.