Victoria's Secret continues to go through difficult times - customers go to competitors.
American fashion retailer L Brands, which owns retail chains Victoria's Secret and Bath & Body Works, reported its operating results for the third quarter of 2020. The company's sales grew by 14% year-on-year and exceeded 3 billion rubles.
Despite the market crisis, L Brands received more than $330 million in net profit in the first quarter of this year. In contrast, during the same period last year, the company ended with a loss of more than a quarter-billion.
According to the company's report, sales of lingerie brand Victoria's Secret continue to fall in the United States. In the third quarter, the decline was another 14%, to $1.35 billion. At the same time, Bath & Body Works cosmetics and perfume stores increased their revenue by $600 million to $1.7 billion for the year, which allowed L Brands to improve its overall sales dynamics.
Market participants note that Victoria's Secret continues to go through difficult times when customers go to competitors. The fastest growing online brands on the American market are Aerie and ThirdLove. Against quarantine's backdrop, demand is growing even more for brands specializing in comfortable lingerie and sleepwear.
Previously, L Brands planned to sell 55% of Victoria's Secret to a private investment company. Still, the deal worth $525 million, which involved the closure of 250 stores, did not occur. Today, against the backdrop of worldwide quarantine, there is an increased demand for both underwear and cosmetics on the market.
Photo credit: depositphotos.com.