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Victoria's secret announcement of the halted swimwear business has been down for three consecutive months

Aug 17, 2017

Victoria's secret (hereinafter referred to as "the secret") parent company L Brands recently released February sales data. During the reporting period, L Brands net sales of $ 770 million, down 10% from last month. L Brands said the withdrawal of swimwear and other business on the company as a whole and the balance of comparable income has brought adverse effects, respectively, down 6% and 8%.

Data show that in February 2017, the comparable income fell 16%, compared with 4% growth in the same period last year; Bath brand Bath & Body Works fell 4%. At present, there are 1177 stores in the world, Bath & Body Works was 1693. As early as last year in July and September, the performance of the zero has been zero growth. Up to now, the performance has been down for three consecutive months.

In 2016, Victoria announced to stop the swimwear business, paving the way for sports and leisure products. According to the 2015 data, the sales of the swimwear business are $ 500 million, accounting for only 6.5% of total sales. For the poor performance of the swimwear business, Victoria has blamed it on "the design is too complicated." In fact, the exit of the swimwear market to the performance of the security also brought a certain impact. In January, Victoria also said the decline was due to the withdrawal of swimwear business due. But for the future development, L Brands is still optimistic attitude, that the current decline in performance is only the pain during the transition.

In the performance decline, the choice of Victoria will bet on the Chinese market. In February, Victoria in Shanghai, China and Chengdu opened two flagship store, which is the first time L Brands underwear products into the Chinese market. For the Chinese market, L Brands is extremely demanding. L-Brands CEO Les Wexner has said that in the group's next reform strategy, the Chinese market will be an important position to revive the brand. However, there are still analysts believe that the secret into the Chinese market missed the best time.