Victoria’s Secret’s parent company, L Brands Inc., experienced smaller-than-expected sales gains in April.
The company believes the disappointing sales figures are connected to a drop in consumer confidence regarding the recovery of America’s weak job market, and individual financial challenges.
Poor weather, delaying the purchase of spring clothes and swimwear, is also believed to be partly responsible. As a result, L Brands stock dropped 1.7 percent in April as well, the second largest decrease on the S&P Market Retail Index, according to Market Watch.
Excluding Victoria’s Secret performance in March and December, this marks the slowest growth rate for the company since March 2010. Lukewarm reception to the company’s new bra lines, in addition to increased competition for their share of the bra market, also had an impact.
In the same time period, discount chains TJ Maxx and Marshall’s, which offer lingerie at steep discounts, experienced healthy sales, reflective of the consumer demand for reduced prices.
However, La Senza, another lingerie line owned by L Brands Inc., At La Senza, saw its April comps rise by 2 percent, with first quarter sales reaching $72.8 million and comps increasing by 5 percent.