Victoria’s Secret (hereinafter referred to as “Victoria’s Secret”), the high-end underwear brand most familiar to Chinese consumers, is in turmoil.
After just announcing that celebrities such as Zhou Dongyu and Yang Mi will serve as brand spokespersons, bad news continues to come from Victoria’s Secret. The once-famous Victoria’s Secret may now be “no longer a myth”!
Picture source: Photographed by reporter Tan Yuhan
The first quarter financial report released by Victoria’s Secret parent company L Brands (LB) on May 20 showed that it will permanently close 250 stores in North America. .
The interim CEO said that more stores are expected to close in the next two years
Under the influence of the epidemic, Victoria’s Secret, which once created the “sexy myth”, has further continued its growth in the past four years. Decline. In the first fiscal quarter ending on May 2, sales of L Brands, the parent company of Victoria’s Secret, fell 37% year-on-year to US$1.654 billion, with a net loss of US$297 million. Among them, Victoria’s Secret brand sales fell 46% to $821 million, and Bath & Body Works brand sales fell 18% to $712 million. This is the third consecutive quarter of losses for the group and the fourth consecutive quarter of sales decline.
While performance was low, the original plan to sell to private equity fund Sycamore Partners was also terminated due to the epidemic.
Picture source: Photo by reporter Zhang Jian
In the underwear industry Victoria’s Secret, which was once so prosperous, is now in an increasingly difficult situation.
Although in recent years, Victoria’s Secret has faced pressure from declining sales and had to completely close some global stores: 30 in 2018 and 53 in 2019. Victoria’s Secret parent company L Brands will close more than 200 stores in 2020. Additionally, the company expects to close more businesses.
On May 21, Victoria’s Secret interim CEO Stuart Bergelfer said: “We expect that in addition to the 250 stores planned to close this year, there will be a considerable number of stores closed. Stores are closed, which means there will be more in 2021 and probably more in 2022.” He declined to give specific numbers for those years.
Victoria’s Secret has greater hopes for the Chinese market
The reporter learned from Victoria’s Secret China , the group’s employees have been working from home during the epidemic, and physical stores have been closed. It was not until April 22, North American time, that the global logistics team, with the support of asset protection, regulatory and other departments, reopened some distribution centers, and Victoria’s Secret once again provided services to consumers through online channels.
On the one hand, it is closing its North American stores, and on the other hand, Victoria’s Secret has greater hopes for the Chinese market.
Victoria’s Secret, which is in trouble, attaches great importance to the consumption potential of the Chinese market. On April 20 and April 24, Victoria’s Secret officially announced that Zhou Dongyu will become its brand spokesperson for Greater China, and Yang Mi will be its spokesperson for Asia.
It is reported that more than 40 Victoria’s Secret stores in Beijing, Shanghai, Guangzhou, Chengdu, Chongqing and other places have resumed normal business. On May 21, we interviewed several Victoria’s Secret stores to learn about their operations. “We are currently operating normally, so don’t worry, we will be releasing new products very quickly,” said a staff member of a Victoria’s Secret store. </p
