Victoria's Secret owner plans store closures in U.S., Canada
- Author: Anthony Vega Mar 02, 2019,
Mar 02, 2019, 0:40
The giant lingerie retailer's parent company L Brands announced that it will close as many as 53 stores in North America.
A drop in sales of 3 per cent over the Christmas period, combined with a fall of in-store sales by 7 per cent, meant shares in the parent company dropped by nearly 9 per cent this week.
According to the company website, L Brands now owns 957 stores in the U.S.
It is not yet known which stores will close.
Victoria's Secret has three stores in the Fresno area: One in River Park, one at Fashion Fair mall and another at Sierra Vista Mall.
The company has taken several hits over the past couple of years, with almost 30 stores shut down in 2018, Business Insider reports.
Mr. Burgdoerfer says the business made the decision by analyzing current and projected performance, sales, profits, cash flows and trade dynamics. Analysts had expected sales of $4.88 billion, Total sales at Victoria's Secret were $2.531 billion, down from $2.668 billion previous year.
Total same-store sales, including direct and stores, increased 3%.
L Brands' overall results for its fourth quarter, which includes the Christmas holiday period, were virtually flat as compared to one year earlier. This marked its 16th consecutive quarter of double-digit positive growth.
The hard holiday period and planned store closures are the latest turmoil for the brand.
Shares of L Brands, which also owns Bath & Body Works, closed Thursday's session down 4.6 percent, after falling as much as 8.9 percent during the day.