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WHY VICTORIA'S SECRET'S TIME HAS COME AND GONE

WHY VICTORIA'S SECRET'S TIME HAS COME AND GONE:
The company’s disappointing performance in December, especially in its flagship Victoria’s Secret brand, hints at why he agreed to talk. Comparable Victoria’s Secret store sales in its near 1,000 retail locations, with nearly half in second- and third-tier malls according to WSJ, were down 6% in that vital gifting month, contributing mightily to the 48-week year-to-date decline of 9% in its stores. If direct and store sales are added to the calculations, Victoria’s Secret only dropped 1% in December, but that doesn’t erase the poor showing of the brand throughout the year. Comparable store and direct sales of Victoria’s Secret still are 9% below 2016. 

Victoria’s Secret may command upwards of 30% of women’s underwear market today, but that share is being eaten away by rapidly emerging competitors more in tune with what women, not men, want in bras.

The bras are designed for men to look at, not women to wear. Blogger Courtney, who worked as a professional bra fitter, wrote, “I’m here to tell you that Victoria’s Secret is actually one of the worst places to go to buy your bras,” as she unpacks the four reasons why Victoria’s Secret bras are bad. Its sizes are limited, its sales clerks aren’t certified in bra fitting, its bras are poor quality and the kicker, “I don’t like how VS objectives women and teenage girls in an overtly sexual way.”
Victoria’s Secret’s Ohio-based parent L Brands reported an unexpected drop in June comparable sales for its lingerie brand, despite a lengthy semi-annual sale and deep price cuts. Apparel and retail analysts pounced. “It’s game over” for Victoria’s Secret and Pink, Jefferies analyst Randal Konik said in a note. Consumers have moved on to more conventional brands like American Eagles’ Aerie brand, while Victoria’s Secret has seen “massive traffic declines, zero pricing power and market share losses mounting”, Konik continued. Konik concluded that investors have been ignoring the facts and L Brands stock dropped 11%. It is now down 40% for the year. It suddenly seemed the company secret, masked by growth in the company’s teen-focused Pink line, was no longer well hidden. Victoria’s Secret is still the No 1 US lingerie brand, but its share of the market is slipping.
A September 2017 consumer study conducted by Wells Fargo found that of 48% of customers who had shopped at Victoria’s Secret in the past year, 58% said prices were too high. Crucially, the study found, Victoria’s Secret also “may be falling out of favor”, with 68% of respondents saying they like the brand less than they used to. More than half of those said the brand feels “forced” or “fake”. Analysts worried that sports bras and bralettes may be alienating its core customers.
References:
1. https://www.forbes.com/sites/pamdanziger/2018/02/08/why-victorias-secrets-time-has-come-and-gone/#a140eba6bde6
2. https://www.theguardian.com/business/2018/jul/22/victorias-secret-pink-sales-stock-down

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