Victoria's Secret owner plans store closures in U.S., Canada

Victoria's Secret

Victoria's Secret will close 53 stores this year as the lingerie chain continues to lose ground to the competition, which includes startups and large retailers.

Gap said Thursday that it would close 230 namesake stores in the next two years, as it reported that the brand's same-store sales fell 7% during the holiday quarter.

According to Bloomberg, the company stated, "Given the decline in performance at Victoria's Secret, we have substantially pulled back on capital investment in that business versus our history".

According to the company website, L Brands now owns 957 stores in the U.S.

La Senza, which had been owned by L Brands until it was sold to private equity firm Regent last month, closed one Canadian store over the past year to leave it with 118 locations in the country.

Mr. Burgdoerfer says the business made the decision by analyzing current and projected performance, sales, profits, cash flows and trade dynamics.

Gap, JCPenney, and Victoria's Secret announced more than 300 store closures over the course of 24 hours this week. The company's other flagship brand, Bath and Body Works, did well.

"People identify Victoria's Secret with what's it been for the last 20 years - very sexy and airbrushed models", she said.

Total same-store sales, including direct and stores, increased 3%.

Its parent company L Brands reported fourth-quarter earnings after market close on Wednesday.

The results beat the company's own forecasts for the quarter, which it had revised downward midway through 2018.

"The most important thing, in our view, is the merchandise", he said. On Thursday, L Brands' stocks dropped almost 7 percent.

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