Its Sales Performance Has Declined For 6 Consecutive Months.

Physical store sales have been hit hard, sexy in the US

Brand Victoria's Secret

The market looks bad. Sales are lower than expected in the latest month, and sales revenue has declined for 6 consecutive months.

According to the world clothing shoes and hats net, the L Brands of its parent company sold 9% in June and approached double digits.

During the period, L Brands sales fell 6% to $1 billion 213 million.

In the 22 weeks ended July 1st, net sales of L Brands fell 6% to 4 billion 424 million US dollars compared with the same period last year, which was 9% lower than the 5 week in July 1st and 22 weeks in July 1st.

It is noteworthy that after May, the sales of underwear products dropped by 14%.

In a letter to investors, Amie Preston, chief investment relations officer of the company, said the company's performance fell to "the lowest expected value".

In view of the negative impact of the swimsuit and most clothing business on combined sales, about 7%, L Brands has decided to withdraw from the bathing business.

During the period, the same store sales fell by 17%, of which 10% was attributed to the drag of swimming and clothing.

After the announcement of the earnings report, L Brands fell more than 14% to $46.49 per share yesterday, and the market value evaporated about 2 billion US dollars. At present, the market value is $12 billion 985 million, and now L Brands has become the worst performing index of the S & P 500 index.

Amie Preston said that in July, the secret of Vitoria will launch the T-shirt bra called "Delivering Fashion". The sister series Pink will launch the "Wear Everywhere" bra, but it is not yet able to predict whether the new product can boost sales.

Stuart Burgdoerfer, executive vice president and chief financial officer of the company, said that L Brands expects revenue growth of 10% this year and will focus on controllable business, such as inventory management and control costs.

In the year to July 2nd, total sales of L Brands fell 6% to 4 billion 400 million US dollars, and sales fell by 9%.

L Brands's net profit in the first quarter dropped 38% to 94 million 100 thousand dollars compared with last year, indicating signs that the company's performance is in the mire.

Under the influence of the depressed retail market, some analysts pointed out that the future performance of L Brands is worrying, and there will be no signs of recovery growth until 2018.

According to the results of the Wei Jeanne group, the largest supplier, the orders for the company accounted for 35% of the company's total annual sales. However, because of the reduction in the new quarter's orders, virgin's profits fell by 89% in the first half of last year.

It is worth noting that the fire in the US's backyard is the biggest in the largest market. In addition to the downturn in physical retailing, Amason, a strong competitor, is also coming.

Earlier, according to the Wall Street journal, Amazon has its own underwear.

Iris & Lilly has been launched in the UK and is planning to enter the US market. The main selling point of Iris & Lilly is similar to that of the 8 self brand clothing launched by Amazon. First of all, it is cheap. With the advantage of the scale of e-commerce platform, Amazon has a high bargaining power for suppliers, and the lowest price of an underwear is only 7 dollars.

In contrast, the single price underwear sells for about $40.

Another advantage is user data support.

Amazon occupies 43% of the total online retail sales in the United States, and according to a survey conducted by Morgan Stanley last year to 2000 consumers, 58% said they had bought clothes in Amazon in the past 6 months.

This means that if the search volume of "pink lace bralette" soar, Amazon can respond faster to its trend changes and customer feedback than its competitors, and obviously it will suffer a new round of performance shocks.

Now, the growth of China's market will be more urgent.

Last year, when Liu Wen, Xi Mengyao, He Sui and Ju Xiaowen joined the four Chinese supermodels on the Paris show, they had already heard that the 2017 year old underwear show will be moved to Shanghai, China. The news was confirmed at the beginning of this year. Chen Yongjie, director of the Shanghai Huangpu District Business Committee, was informed by the morning post that the confirmation of the 2017 underwear show will be held in Shanghai.

This is also the first time that Wei has held a press conference in Asia, but the specific venue and time have not yet been announced.

In February this year, the first official flagship store in mainland China was officially opened in Shanghai's Li Bao Plaza. L Brands CFO and executive vice president Stuart Burgdoerfer said it expects the store to sell more than $800 per square foot, and is optimistic about the potential of Chinese consumers.

Fashion headline reported earlier that L Brands has withdrawn its right to operate in China.

Previously, retail stores in Hongkong, Shanghai, Guangzhou and other places were not directly operated by L Brands, but by Malaysia Valiram group, and these stores only sold perfume, beauty products and accessories, but did not include underwear for core products.

However, some analysts have questioned the millennial consumer's sense of novelty against the security market.

Behind this $5 billion underwear business, L Brands has reason to start to tremble for the trend. Despite its reputation as the sexiest store in fashion retailing, the iconic sex appeal seems to be facing severe challenges as companies try to attract younger consumers to shops.

For millennial consumers, they want to support real and valuable brands, products are not just products, brands should be a noun that symbolizes greater or more social significance.

This is a part of sexy and cool meaning. It is also a factor that can attract young consumers. Now it seems that it is becoming increasingly difficult for them to assume the definition of sex.

"What is the company providing besides the lace little underwear?" some analysts pointed out that the sexy marketing mode of the company may be out of date.

More interesting reports, please pay attention to the world clothing shoes and hats net.