Pandemic ‘Nesting’ Isn’t Enough to Revive Victoria’s Secret
Bath & Body Works posted a 55% jump in quarterly sales as the coronavirus fueled demand for soap and hand sanitizer, helping its parent company offset another quarter of declining sales at its Victoria’s Secret lingerie brand.
L Brands Inc., which owns both chains, said Wednesday it swung to a profit and its overall sales rose 14% in the quarter ended Oct. 31. In August, L Brands said it would close 250 Victoria’s Secret stores and cut 15% of its corporate jobs as it prepares to separate the two brands.
这两家连锁店的所有者L Brands Inc.周三表示，该公司扭亏为盈，截至10月31日的季度整体销售额增长14%。今年8月，L Brands表示，将关闭250家维多利亚的秘密门店，并削减15%的企业工作岗位，以准备将这两个品牌分开。
Shares of L Brands jumped 15% in after-hours trading after the results exceeded Wall Street’s expectations.
Personal-hygiene products such as hand sanitizers and soaps boosted Bath & Body Works sales to $1.7 billion, up about $600 million from a year earlier. Executives said they were able to pull back on promotions given the strong demand both in physical stores and online.
Victoria’s Secret had higher sales in sleepwear and loungewear as more people are “nesting” at home, executives said, but its total sales fell 14% to $1.35 billion. Declining store sales offset e-commerce and catalog gains for the brand. The women’s catalog brand, once the staple of beauty and lingerie fashion, has experienced declining sales for years.
Executives are trying to turn around Victoria’s Secret after a plan to sell a controlling stake to private-equity firm Sycamore Partners collapsed this year. The deal was scrapped after Sycamore claimed that furloughs and store closures related to the Covid-19 pandemic violated the terms of the deal.
After the failed deal, longtime L Brands leader Les Wexner stepped down as chief executive. Mr. Wexner had faced scrutiny amid alleged ties to the late Jeffrey Epstein, who was indicted last year for a scheme to sexually abuse minors.
在这笔交易失败后，L Brands的长期领导者莱斯·韦克斯纳(Les Wexner)辞去了首席执行官一职。韦克斯纳曾因涉嫌与已故的杰弗里·爱泼斯坦(Jeffrey Epstein)有关联而面临审查。爱泼斯坦去年因策划性侵未成年人而被起诉。
Victoria’s Secret canceled its annual fashion show for the first time since its creation in the 1990s to re-imagine the brand’s marketing strategy. It also brought back catalog mailings after deciding to cut them.
The brand has been trying to turn its image around, said L Brands and Bath & Body Works CEO Andrew Meslow. “Customers have noticed the changes that we’ve made in our merchandise assortments and marketing and are responding positively,” he said.
L Brands and Bath&Body Works首席执行官安德鲁·梅斯洛(Andrew Meslow)表示，该品牌一直在努力扭转自己的形象。他说：“顾客已经注意到我们在商品分类和营销方面所做的改变，他们的反应很积极。”
L Brands said its profit was $330.6 million for the October-ended quarter, compared with a loss of $252 million a year earlier when it took a large write-down on the value of the Victoria’s Secret brand.
L Brands表示，在截至10月的季度里，其利润为3.306亿美元，而去年同期亏损2.52亿美元，当时该公司对维多利亚的秘密(Victoria‘s Secret)品牌的价值进行了大规模减记。