Victoria’s Secret stores closing in 2019 will have 53 of the retail chain’s locations closing down.
The news comes from Victoria’s Secret’s parent company L Brands (NYSE:LB) during a conference call for its most recent earnings report. However, there isn’t yet a list of the locations that will be closing down.
Stuart Burgdoerfer, Executive Vice President and CFO of L Brands, said these stores are closing due to a few different reasons. This includes “overall performance of the Victoria’s Secret business, not meeting our expectations or having year-on-year declines.”
The Victoria’s Secret stores closing will have the chain reducing its store count by about 4%. It also represents a much larger yearly closing of stores than what is normal for the chain. The chain typically closes 15 stores a year. Last year was also bad for Victoria’s Secret with it shutting down 30 stores, reports USA Today.
Part of the problems that Victoria’s Secret is facing are the introduction of other lingerie companies. These companies are going the extra mile to draw in customers with betting fitting bras, as well as using normal women in lieu of models.
“People identify Victoria’s Secret with what’s it been for the last 20 years — very sexy and airbrushed models,”Janine Stichter, a Jefferies analyst, told CNN. “If they were going to pivot now, I don’t think it would come off as authentic. They don’t have a great option.”
LB stock was up 5% as of Friday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.