L Brands, the parent company for Victoria’s Secret, is having a financial struggle while share prices are down more than 45 percent. This makes it the worst performing stock on the S&P 500.
It seems like no matter what the company execs do to help drive sales, nothing is working. This leaves many people asking the question, “Is the 41-year old brand washed up?”
Corporate has cut the prices of their lingerie and extended the sales promotions. It has not had much impact. Sales per square foot have been down for two years in a row.
The marketing tactics of the lingerie giant may not be appealing to young women anymore. Most competitors have engaged in media campaigns that appeal to average people, while Victorias Secret is still heavily invested in its image of top models as the face of the brand. They seem reluctant to market to plus-size consumers, which is also stifling their potential to attract clientele.
Another thing which may have cost Victoria’s Secret is when they stopped making swimsuits. Experts claim this is just one less reason to shop at the stores.
Les Wexner is the long time chief of L Brands. He bought the 5-store Victoria’s Secret business for $1 million in 1982. Now, it has grown into the most recognized lingerie brand across the globe. He seems to be out of touch with the modern climate and doesn’t seem interested in changing things. For instance, he doesn’t understand how the change of the internet and social media has impacted corporate sales around the world. He is also unaware with the extent of social issues, such as the #METOO movement.
When asked about whether women in the fashion industry are exploited he responded, “his company is run by women, so it’s impossible for women to exploit other women.”
This quarter will be the 8th quarter in a row that Victoria’s Secret sales have dropped.Twitter contests by Rewards Fuel