The Sale Of The Sale Slipped And Some Businesses Were Cut Down To Protect Themselves.

U.S.A

Brand Victoria "s Secret" (hereinafter referred to as "Wei") parent company

The company reported its second quarter earnings recently.

Unfortunately, sales and profits once again fell short of expectations.

In the spring of last year, the brand decided to cut it off.

After the line, the brand's revenue has failed. Although L Brands is trying to restore its financial position, its current achievements make it hard for investors to gain confidence.

According to the world clothing and shoe net, L Brands's comparable store sales fell 8% in the second quarter, down by 7% of analysts' expectations, and net sales fell 4.7% to $2 billion 760 million, which was in line with expectations, while net profit fell to 140 million US dollars.

Compared with the same period last year, the comparable store sales of the largest brand of the group declined by 14%, while its other US bathing brand Bath & Body Works rose 6%.

The company pointed out that last year's decision to reduce the cost and cut down swimsuits and clothing lines under the Wei Mei brand led to a 9% decline in comparable sales and a 6% drop in sales for the entire group.

Randal Konik, an analyst at Jefferies, a consultancy, said that the practice of terminating swimwear and other product lines last year has had an impact on the results. "Now it seems that such a decision may be wrong."

But it can not be said that the exit of swimsuit lines is the whole reason for the sale of secret goods.

Female consumers are no longer keen on purchasing functional underwear, and at the same time, natural beauty has become the main trend of consumption as well as in the field of cosmetics.

This undoubtedly leads to most of the underwear styles that are famous for creating sexy images.

This year, the company's share price has fallen by nearly 40%.

L Brands Group CEO and chief executive officer took over from Leslie Wexner at the beginning of last year, which coincided with the overall decline in performance.

In a telephone conference with Wall Street analysts, Wexner explained the decline in performance on the grounds of cutting swimwear lines. He also gave the same reason after announces the 6 month slide, which led analysts to question the company's annual revenue growth of 10%.

"Fashion retailing is a constantly changing industry. When you stand on the draught, the virtuous circle will last for 8 to 10 years. After that, we must keep thinking about how to change it."

Wexner has previously indicated to investors.

He thinks that L Brands group is in such a turning point.

Wexner admits that he has seen the bias of the hindsight: "after all, I hope we took these actions two or three years ago for the changes we are making now, when there was ample opportunity to change things."

Victoria's Secret flagship store in Huaihailu Road, Shanghai, opened in early 2008

But we also see that efforts are being made to develop new markets. In the declining market of North America, the Chinese market is their next goal.

In February of this year, it opened stores in Shanghai and Chengdu, and the flagship store in Shanghai, which is rich in Huaihailu Road, has a four storey scale. It can be seen that Wei hopes to establish a high-end and mature brand image in China and get rid of the mass consumption level of the United States.

At the same time, the Chinese women's underwear market expected to have a huge profit of $25 billion in retail sales in 2017, but the market brand layout is still very fragmented, and there is no leading brand, but whether or not it can occupy the position depends on whether its product pformation can successfully please the Chinese consumers.

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