The slip hulk will stop offered swimwear after 2016, according to a note from Citigroup as good as dual people informed with a company, reports BuzzFeed News. Citigroup reportedly indicated that a brand’s swimwear space would be “better used for VS Sport,” Victoria’s Secret’s activewear line.
Just final May, analysts had pronounced a swimwear difficulty had a intensity to grow into a $1 billion business. Swimwear is a $500 million partial of Victoria’s Secret business, primogenitor association L Brands reported early final year, accounting for 6.5% of sales.
However, BuzzFeed records that final Aug a association reported reduce sales for swimwear, after conceptualizing overly-complex swimsuits. The code sole a accumulation of mix-and-match swimsuit tops and bottoms, utilizing designs dictated to raise curves.
The news comes after Victoria’s Secret primogenitor association L Brands announced progressing this month that Victoria’s Secret will be slicing “certain sell categories,” plus approximately 200 employees, as partial of a wider restructuring plan.
With a restructuring program, Victoria’s Secret will be separate in 3 divisions: Victoria’s Secret Lingerie, Victoria’s Secret Beauty, and PINK.
“We are creation these changes to accelerate a expansion and to strengthen a business for a prolonged tenure by squeezing a concentration and simplifying a handling model,” CEO Les Wexner pronounced in a matter on a topic. “I am certain that these changes are required for a industry-leading brands to strech their poignant potential.”
Victoria’s Secret told Business Insider that it could provide no serve information during this indicate over a proclamation of a restructuring, and could not pronounce to a destiny of a swimwear module specifically.
The apparent finish of swimwear during Victoria’s Secret comes during a scattered time for Victoria’s Secret. The company’s longtime CEO, Sharen Jester, abruptly over a code in February.
Separately, some business have called Victoria’s Secret’s strategies into question, as a success of plus-sized models and anti-airbrushing campaigns illustrate a arise of beauty standards that separate from Victoria’s Secret normal selling campaigns.
However, a slip code is still a many successful in a world, holding 61.8% of a slip market, according to a IBIS World. Victoria’s Secret allied sales for Mar were adult 2%.