The parent company of Victoria's Secret is pulling itself up by the bootstraps after it met with bad sales during the holiday season, through the closing down of more than 50 underperforming outlets in North America.
L Brands Inc., the owner of Victoria Secret, announced plans to close 53 stores in North America this year.
The store announced that rising costs and plateauing sales mean that the brand was down by 45 percent for the 2018 fiscal year.
These aren't the only numbers falling for the lingerie company.
Closure activity doubled that rate in 2018, with the company shuttering 29 Victoria's Secret stores in the USA and one Canadian location of its Pink brand, which targets teenagers and young women. The company closed 30 stores a year ago as it tried to escape weak malls. Perhaps Victoria's Secret can take note. On Thursday, L Brands' stocks dropped almost 7 percent. It has plunged more than 40% in the past year.
Sales at Victoria's Secret fell 5.14 percent to $2.53 billion while same-store sales declined 3 percent in the holiday quarter, as customers move to comfortable sports bras and bralettes.
Competition in the lingerie industry has increased in recent years. He said Victoria's Secret will place a "dominant focus on the customer and on the merchandise" as it attempts to turn around its business. "If they were going to pivot now, I don't think it would come off as authentic". Lululemon and Walmart have followed suit and alluded to plans to reduce pricing. The closure in the amount of stores is historically more than three times compared to the 15 shops it shuts annually on average.