As L Brands cuts back on investments in new and renovated stores, the intimates retailer plans to close approximately 53 Victoria's Secret locations this year. The retailer closes an average of around 15 stores annually and has 1,143 stores around the globe overall, CNBC reported.
Company executives said, according to the outlet, “There are no constraints. We are not financially constrained, and we've got a lot of different things that we have and can consider.” As it stands, women have moved to brands that appear to be more inclusive such as Adore Me and Third Love as well as more comfortable styles of bras. At the same time, it was reported that millennials spent one-third of bra dollars last year on sports bras per NPD Group data.
When it comes to earnings, L Brands posted net income in the fourth quarter of $1.94 per share or $540 million compared to $2.33 per share or $664 million a year prior. In addition, net sales fell short of expectations of $4.88 billion at $4.85 billion. And the company expects that earnings this year will be in the range of $2.20 and $2.60 per share.
The news comes on the heels of reports that Victoria’s Secret is facing new competition from Target, which is preparing to enter the sleepwear and lingerie market. According to CNBC, the retailer will roll out three lines of sleepwear and lingerie in the spring. Those lines include Stars Above for sleepwear as well as loungewear, Auden for intimates and Colsie for all three categories.
Target Senior Vice President and General Merchandise Manager Of Apparel and Accessories Jill Sando said, according to reports, “We want to create the ultimate destination for our guests — one that’s inviting and inspiring and allows all women to feel comfortable and confident.” All of the new bras in the new line are said to be priced at under $22, while loungewear and sleepwear will reportedly cost under $30. Target also plans to add Bra Fit Studios for customers to help them find items based on their fit.