The Victoria’s Secret Angels had a great Christmas. So did Tub & Physique Works.
Mum or dad firm L Brands on Thursday revealed web gross sales for the holiday buying season, or the nine-week interval ending Jan. 2, have been $3.8 billion, in contrast with $3.9 billion the identical time final 12 months.
“We’re very happy with our vacation outcomes, which considerably exceeded our preliminary expectations, pushed by a rise in profitability at each Tub & Physique Works and Victoria’s Secret,” Andrew Meslow, chief govt officer of L Brands and Tub & Physique Works, stated in an announcement. “On this difficult surroundings, we maintained our concentrate on buyer and affiliate security and delivered distinctive execution. Tub & Physique Works continues to ship document outcomes, demonstrating the power of the model. The turnaround at Victoria’s Secret additionally continues to achieve momentum, pushed by an improved merchandise assortment and centered execution of retail fundamentals and our revenue enchancment plan.”
The corporate now expects to report fourth quarter earnings per share between $2.70 and $2.80.
“We’re happy with the continued progress within the turnaround of the Victoria’s Secret enterprise,” the corporate added. “Improved assortments, disciplined stock administration and improved promoting enabled a considerable discount in promotional exercise.”
Even so, whereas the Victoria’s Secret model — which incorporates the Lingerie, Beauty and Pink divisions — is clearly making progress in its restoration efforts, the vast majority of features across the holiday have been nonetheless within the Tub & Physique Works model. Complete firm comparable gross sales elevated 5 p.c through the vacation buying season, year-over-year — or a 17 p.c acquire at Tub & Physique Works and a 9 p.c lower at Victoria’s Secret. In shops, Victoria’s Secret’s comparable gross sales dropped 23 p.c, whereas gross sales within the direct channel rose 24 p.c through the vacation buying season.
The retailer added, nonetheless, that vital will increase in conversion and common unit retails on the Victoria’s Secret model helped offset declines in retailer site visitors. L Manufacturers had 2,682 shops globally as of Jan. 2, or 1,747 Tub & Physique Works and 935 Victoria’s Secret areas.
In the meantime, the innerwear big has added a string of senior-level hires over the previous couple of months to assist flip the model round, up to date the assortment and advertising supplies, bought a majority stake of the Victoria’s Secret U.K. business to Next plc and closed tons of of unprofitable shops to make manner for extra lucrative markets, such as Milan and Israel.
L Manufacturers additionally trimmed about $400 million in bills by decreasing the company headcount and revealed plans to separate Victoria’s Secret into a personal firm, serving to unlock worth from the Tub & Physique Works model. It has but to launch a agency date for the spin-off.
Shares of L Manufacturers, that are up greater than 141 p.c year-over-year, have been up about 1 p.c Thursday throughout pre-market hours. The corporate plans to report fourth quarter earnings on Feb. 24.