Is The Secret Of Vitoria Capable Of Going Out Of The Trough?

According to the world clothing shoes and hats net, Victoria 's Secret

(VS) the uncertain recovery process made investors doubt the American classic.

Whether the brand has the ability to go out of the trough.

VS recorded a comparable sales growth of 1% in 3, although it was significantly improved over the same period last year, but the sales quality and profit level all showed a negative side in 1%.

In the monthly sales review, the parent company L Brands Inc. (NYSE:LB) revealed that the sales of the same store on the VS line decreased by 3% last month, so it is necessary to continue to carry out additional promotional activities to stimulate passenger flow, which also led to a sharp decline in commodity profit margin compared with the same period last year.

During the period, VS's beauty business grew steadily, and its underwear grew slightly. The only long-term growth engine was PINK.

Continuation of the decline in recent months, play a counteracting role.

Group explanation is mainly due to the fact that PINK is pulling out of the swimsuit category along with the main line. It also emphasizes that the brand's underwear sales in the same store are growing steadily, and the key products of home clothes have also been improved.

Driven by an annual surge of sales of Bath&Body Works, L Brands Inc. has recorded a 4% increase in overall sales, including 2 percentage points earlier this year, but it is expected that the same factor will lead to a 2-3 percentage point reduction in comparable sales in April.

In the first five weeks of April 7th, L Brands Inc. achieved a net sales of US $1 billion 20 million, up 7.2% from 951 million 400 thousand US dollars in the same period last year.

In the sales commentary, chief investor relations officer Amie Preston pointed out that the commodity profit margin declined in March, which was worse than expected. At the end of the month, the inventory per square foot increased by 15% over the same period last year, and 6% growth compared with the same period two years ago, but the situation is in line with expectations.

Credit Suisse Group AG Credit Suisse analyst Michael Binetti believes that L Brands Inc. overall sales performance reached the bank's forecast, he also warned that the backlog of inventory may oppress the first quarter earnings.

Jefferies Group LLC analyst Jack Frey Randal Konik at the end of March, according to the PINK brand and Body by Victoria product line discount tracking, released a research report that VS accounted for nearly 40% of the sales of the PINK brand has been on the brink of collapse, at the same time, the core business of the company continued to be under pressure.

When L Brands Inc. (NYSE:LB) opened 1.1% on the 12 day, it extended to 5.5% at noon and 35.84 dollars at a low level, which was close to a low of 35 US dollars a year.

Since 2018, the stock has fallen 40%, the bear bear of Zacks, an investment research firm.

Zacks pointed out that in the past 60 days, 7 analysts had lowered the first quarter earnings expectations of L Brands Inc., and the combined expectation of EPS dropped from $0.32 to 0.19 US dollars, a 40.6% decline, and the number of analysts who lowered annual profit expectations reached 11.

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