Victoria's Secret's business is doing the unthinkable and investors are panicking
For the month of April, L Brands comparable sales were up 1%, but that's not what analysts were looking for. According to Bloomberg, analysts had estimated an average of a 4.8% increase.
But more jarringly, the shortfall was because Victoria's Secret's comparable sales fell 1% for the month of April, a rare miss for the company.
Victoria's Secret is famously a leader in the lingerie industry, taking in nearly $7.7 billion in sales (including e-commerce) in 2015, a time when other retailers were struggling.
So the drop freaked investors out on Thursday: Shares of L Brands dropped 12%.
In a statement, L Brands said that slip was because of softness in the lingerie sector, its core business, as well as its beauty sector. The younger sister of the brand, PINK, performed well.
For the entirety of the first quarter, comparable sales for Victoria's Secret were up 2%.
Recently, the company has executed some efforts that have led people to question its future.
Former CEO Sharen Jester Turney abruptly resigned in February. In April, the company released a notice saying that it would be restructuring the company and cutting roughly 200 jobs while doing so.
News recently broke that it would axe its swimwear collection, though that could be a move to help the brand evolve.
- I got a $40K raise using this 30-second strategy. It made me realize loud work, not hard work, always wins.
- Qatar Airways' new CEO explains why it's sticking with the Airbus A380 as other airlines retire the costly superjumbo
- Prince Harry and Meghan found out about Kate Middleton's cancer diagnosis on TV like everyone else, report says
- Upcoming cars and two-wheelers launching in India in April 2024
- Ice melt in Antarctica and Greenland is slowing Earth's rotation, affecting timekeeping: Study
- Elections on a plate: Poll panels fix menu & expense ceiling for Samosa, tea, biryani & more
- Regenerative farming, cover crops will help farmers increase yields, reduce stubble burning: IDH CEO
- Sustainable Event Planning