Victoria’s Secret to close 53 stores after disappointing Christmas numbers

Victoria's Secret Is Closing Stores In Canada And We Now Know How Many featured image

Victoria's Secret Is Closing Stores In Canada And We Now Know How Many featured image

Victoria's Secret plans to close 53 stores this year as more women desert the brand for lingerie startups and big retailers.

"Given the decline in performance at Victoria's Secret, we have substantially pulled back on capital investment in that business versus our history", L Brands said in the earnings commentary.

Retail analyst Edited noted last month that consumers' interests in lingerie are turning away from the overtly flirty silhouettes such as those that Victoria's Secret offers.

"And based on those historic and projected results not just for the store in question but for nearby stores, we make judgments about what the projected sales profit cash flow results would be also in relation to what it may cost to exit a store". However, an increase in sales at Bath & Body Works, owned by the same company, more than made up for it.

In 2018, the company closed 30 stores. This would leave the chain with a total of 103 stores in the country.

JCPenney's 2018 fourth quarter net sales fell 9.5 percent from 2017, dropping from $4.05 billion to $3.67 billion, according to the release.

However, the company has not seen enough growth in the last quarter. They also said they don't plan on releasing a full list of store closings planned for the next year.

But after excluding significant one-off items, the company's adjusted net income this year was $786.7 million compared to $919.5 million for the 53-week period last year.

"If the merchandise is special, unique, reflects fashion, has newness ... there are terrific opportunities".

L Brands's chief financial officer Stuart Burgdoerfer said in an earnings call Thursday that the impending closings were triggered by Victoria's Secret "not meeting our expectations".

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