Published: Sat, March 02, 2019
Markets | By Erika Turner

Victoria's Secret closing more than 50 stores after poor holiday sales

Victoria's Secret closing more than 50 stores after poor holiday sales

Other retailers, including Walmart and Best Buy, have performed strongly in recent months.

"The stores identified for closure either require significant capital, are minimally cash flow positive today relative to the company's overall consolidated average or represent a real estate monetization opportunity", JCPenney said in the release.

Gap, JCPenney, and Victoria's Secret announced more than 300 store closures over the course of 24 hours this week. With ever-progressing cultural attitudes, the Victoria's Secret brand looks outdated, and frankly out of touch. He said Victoria's Secret will place a "dominant focus on the customer and on the merchandise" as it attempts to turn around its business.

Victoria's Secret's same-store sales also fell during the holidays, dropping 3% during the quarter.

In their fourth-quarter report, L Brands said that earnings per share for the 13-week fourth quarter ended February 2, 2019, were down $1.94 compared to $2.33 for the 14-week quarter ended February 3, 2018.

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There are also calls from within the Parliament to delay the impending exit in order to clinch a better deal with the EU. Brexit has continued to divide Britain and the EU.

Victoria's Secret's path to a turnaround looks challenging, too.

Even more closures are planned for this year, with L Brands saying that 53 of their North American stores are expected to shut their doors this year.

Shares of L Brands, which also owns Bath & Body Works, closed Thursday's session down 4.6 percent, after falling as much as 8.9 percent during the day. Target launched a new bra and underwear brand for women and teenage girls called Auden on Monday. "If they were going to pivot now, I don't think it would come off as authentic". Lululemon and Walmart have followed suit and alluded to plans to reduce pricing.

The brand says they typically close approximately 15 stores in a year.

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