Victoria’s Secret & Co. is embarking on a strategic shift by reintroducing swim, sport, and apparel offerings, reviving a pivotal aspect of its business from a decade ago.
In recent years, Victoria’s Secret redirected its focus away from these product categories to prioritize intimates. However, the decline in sales of bras and underwear was a consequence of declining customer visits, as noted in a recent presentation to investors.
During the presentation, Greg Unis, President of Victoria’s Secret and Pink, emphasized, “Historically, our customers held a strong preference for our brand when we offered apparel and swimwear.” The company is now committed to «broadening our product categories» to fuel growth.
This strategic shift comes after five years of declining sales, resulting in a significant loss of approximately $1.8 billion in sales since 2018. The most recent full fiscal year experienced a 6.5% drop in revenue compared to the previous year, with net income halved.
While the company’s shares experienced fluctuations, they were up by 2.3% as of 11:58 a.m. in New York. Despite the recent upward revision of its third-quarter guidance, the company still anticipates a net loss of up to 90 cents per share for the period. For the full year, Victoria’s Secret predicts a low-single-digit decline in net sales compared to the previous year.
CEO Martin Waters expressed dissatisfaction with the state of sales in North America, emphasizing, «Sales in North America are ‘not where we need them to be,’ and ‘we are not proud of how the Pink brand is showing up.'»
Conversely, the international sales segment is exhibiting growth and profitability, according to Arun Bhardwaj, the head of the company’s international business. Victoria’s Secret has ambitious plans to establish over 900 stores outside the United States by 2027, surpassing its domestic store count.
In an effort to rejuvenate its image and sales, the company relaunched its iconic fashion show last month, this time in the form of a feature-length film, departing from the live catwalk shows of the 2000s.
“We’re back in the conversation about popular culture,” Waters stated, reflecting on the company’s efforts to remain relevant in today’s fashion landscape.