Victoria’s Secret sales fell by 2% in October leading to the owner of the lingerie multiple, L Brands, suffering a dip in shares and investor confidence.
L Brands, which also owns La Senza and PINK, experienced a fall in shares after the company said it had expected Victoria’s Secret sales to drop in October, which follows the departure of CEO Sharen Turney earlier this year.
Victoria’s Secret, which accounts for nearly 70% of the company’s revenue, has dropped some categories including swimwear, which made up about 6.5% of the brand’s sales in 2015.
The October decline is the first fall for the brand since May, with some suggesting that it is struggling to recover from Turney’s departure, who oversaw total sales revenue increase from £3.67 billion to over £5.71 billion in 2015.
The blip is also being attributed to factors such as increased competition, a drop in footfall in shopping centres and a tough environment for fashion chains.
But L Brands noted that although it took a hit from Victoria’s Secret decreased sales, it enjoyed a 6% comparable sales increase at its Bath & Body Works brand.