L Brands, the parent company of Victoria’s Secret, has once again lowered its FY 2018 guidance stating it was affected by investments in the business and pressure on Victoria’s Secret as the lingerie retailer faces tough competition in the market.
L Brands, which also owns Bath & Body Works, reported an eight per cent increase in first quarter sales compared to the previous corresponding period to $2.63 billion as same store sales rose three per cent company-wide.
The company’s net income fell to $47.5 million from the $94.1 million profit last year.
The Victoria’s Secret brand, including e-commerce, posted a one per cent increase in same store sales after a 14 per cent decrease in the same period a year ago. Bath & Body Works’ same store sales rose eight per cent after last year’s two per cent increase.
At its physical stores, the lingerie brand’s comparable sales decreased five per cent.
L Brands’ stock price fell after it lowered its full year 2018 outlook for earnings by 25 cents per share to $2.70-$3.00 per share.
Jan Singer, CEO of Victoria’s Secret, said the company is trying to gain the attention of younger women and bring back the brand’s former customers by focusing on core categories such as apparel and lingerie. She said they can do this by understanding the needs of the clients.
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