How would L Brands, the parent company of Victoria’ Secret lingerie fare when it releases its fourth quarter earnings on 28th February is a much awaited happening by analysts in the industry.
Much has been talked of this company still considered to be a behemoth in the lingerie industry, in current times. Though its January sales report a drop in spite of heavy promotions, Victoria’s Secret still rules the roost in this industry with almost 63% of America’s lingerie sales said to come from L Brands. But its journey of late has not been as easy as earlier times.
The main reason that can be attributed lies in its sales ethos of ‘selling sexy’. Several new start-ups on the other hand like Third Love, Adore Me, Cuup, Lively and Knix are catering to the factors of convenience and comfort for women and are usurping the position held so far by L Brands.
The question therefore remains as to whether Victoria’s Secret can come out of the rut it has got itself stuck in over the recent years and push its sales to its former glory. The signs do not seem too encouraging from the lackluster response to its January promotions and the worst rating obtained by its yearly fashion show event broadcast on television in December.
Victoria’s Secret will have to get a makeover done on an urgent footing if it has to survive and flourish in this business. L Brands CEO Les Wexner’s team is said to hold some plans up their sleeve but no details are clear as yet.
The effect was felt on the share price of the brand which saw a drastic fall by 60% in 2018 though it has risen by 3% up to now. Analysts are divided on their opinion of the fate of L Brands in the days to come with some vouching for it as a top 2019 pick while some expressing pessimism with regard to it. The coming months alone could give a clearer picture!
