L Brands Inc (LB) Stock Tumbles on Falling Victoria’s Secret Sales

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L Brands Inc (NYSE:LB) had a disappointing Thursday as the company unveiled that its flagship brand’s sales have slowed down.

L Brands Inc (LB)Top-line lingerie brand Victoria’s Secret experienced a sales decline in June compared to the year-ago period, selling $1.21 billion in products over the month. The figure is a 6% decline compared to the $1.296 it raked in over the same month of 2016.

Same-store sales at the same time last year — a five-week period ending in July 1 — were 9% higher than they were this year. This figure was wider than the 6% loss that analysts expected for the period.

One of the key Victoria’s Secret segments was eliminated in its swim and apparel categories took a toll on L Brands’ overall figures. The decision to move away from this category came from the company’s desire to focus on its more profitable businesses, including lower-priced sports bras and unstructured bralettes.

The decline marked a 7% fall for L Brands overall, or a 10% decline for its Victoria’s Secret brand.

If you go back even further, sales for L Brands came in at $4.42 billion over the last 22 weeks for the period ending July 1, a 6% decline once again. In the year-ago period, this figure was $4.73 billion.

Same-store sales for the period was also lower at 9%.

LB stock fell 13.7% Thursday.


Article printed from InvestorPlace Media, https://investorplace.com/2017/07/l-brands-inc-victorias-secret/.

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