International lingerie brand Victoria’s Secret’s parent company has confirmed an earnings dive compared to its report last year, due in part to a product withdrawal.
Full-year earnings per share for the 53-week year ended February 3, 2018 decreased 14% to $3.20 (£2.3), compared to $3.74 (£2.8) last year.
The company also reports that operating income fell 15% to $1.7 billion (£1.2 billion), compared to $2 billion (£1.45) last year, and adjusted net income dropped 16% to $919.5 m (£664m), compared to $1.1 billion (£723m) last year.
In its financial statement for the year, the company commented that the income decrease is due, in part, to Victoria’s Secret’s exit from the swimwear market.
It stated: “For the 53 weeks ended Feb. 3, 2018 , the exit of the swim and apparel categories had a negative impact of about 3 percentage points and 5 percentage points to total company and Victoria’s Secret’s comparable sales, respectively.”
It is the first annual financial report to be released since Victoria’s Secret dropped swimwear in March last year.
In 2016, L Brands’ CEO, Les Wexner, announced that he would reorganise Victoria’s Secret into three business units: Victoria’s Secret Lingerie, PINK and Victoria’s Secret Beauty, in a move to streamline the business.
The company also introduced a new activewear line, Victoria’s Sport.
It has also eliminated its iconic catalogue and moved away from coupons, instead using aggressive markdowns to attract customers to items like sports bras and bralettes.