Victoria’s Secret primogenitor L Brands Inc. could be shedding another business: La Senza, that L Brands describes as “the world’s sexiest slip during severely prohibited deals.”
In an benefit recover Thursday, L Brands pronounced it will pursue “all alternatives for a La Senza business” as partial of a bid to concentration on a incomparable core business.
La Senza has 126 company-owned stores in North America and 188 general stores that aren’t owned by a company, according to a benefit recover for a duration finished Oct. 6. L Brands
estimates that La Senza will have 2018 income of $250 million and an handling detriment of $40 million.
On a day when a Dow Jones Industrial Average
fell 545 points, L Brands batch rose scarcely 6%.
L Brands pronounced sales for 5 weeks finale Oct. 6 were $1.058 billion, adult from $981.6 million final year. Same-store sales were adult 5% for a period.
Read: Victoria’s Secret sells women’s underwear, though has been selling to group
Sales in Aug totaled $856.3 million, with a same-store sales arise of 1%.
The FactSet accord for a mercantile third entertain by Oct is for sales of $2.69 billion and same-store sales expansion of 1.2%.
Victoria’s Secret same-store sales were adult 1%, with expansion in slip and beauty equivalent by declines in Pink, a code focused on college-aged shoppers.
Same-store sales during Bath Body Works rose 13%.
L Brands announced in Sep that it will shiver Henri Bendel dialect stores and a concomitant website in January.
Read: Henri Bendel closure a detriment for shoppers though could expostulate gains during L Brands
“Notable callouts from this month embody ongoing strength and debility during Bath Body Works and Pink, respectively, promo-driven expansion during VS Lingerie, and many interesting, introduction of a fact that L Brands has a second ~$40 million money-losing business that could be private subsequent year, suggesting an ~$85 million year-over-year EBIT [earnings before seductiveness and taxes] lift simply by shutting a doors on a dual businesses,” wrote Instinet analysts led by Simeon Siegel.
Instinet rates L Brands shares neutral with a cost aim of $32, adult $2.
The Victoria’s Secret code has struggled to recover a balance as trends change toward bralettes and divided from a padded, structured bras a code is famous for. The business exited a float category, and a vital selling vehicle, a televised “Victoria’s Secret Runway Show,” has seen ratings decline.
The miss of expansion during Pink is also a concern.
“Pink has not posted a monthly benefit given January, and during only bashful of $3 billion final year, a brand’s health and bargain downside are critical,” Instinet said.
In August, L Brands cut a superintendence for a second time in 2018.
L Brands shares are down scarcely 50% for a year, while a SP 500 index
is adult 2.1% for a period.
Tonya Garcia is a MarketWatch contributor covering sell and consumer-oriented companies. You can follow her on Twitter @tgarcianyc. She is formed in New York.
We Want to
Hear from You
Join a conversation