Grim outlook for Victoria's Secret, Stock Tumble

Grim outlook for Victoria’s Secret, Stock Tumble

L Brands, the parent firm of the famous lingerie brand Victoria’s Secret, released its report for earnings recently. According to the experts, the report is highlighting the fact that the lingerie brand is looking destroyed financially.

The stock market saw a selling of the stock of L Brands after the company decreased the profit estimates for the upcoming year. But, after a discussion that the brand had with the fiscal world regarding their ideas on making the results better, the stocks saw an upsurge and the stock rallied by almost 3%. Following the overall developments, for the financial year 2018, the anticipated earnings by L Brands for every share is to stay between $2.7 and $3, against the previous prediction of $2.95 – $3.25.

Randal Konik, an expert from the leading Financial Services firm Jefferies, informed the clients that it is very clear from the notable decrease in the revenue from products about how large the business relied upon the promotions.

The major concern by the leading people in the sector is about the risk to L Brands because of decreasing number of visitants in the malls of the United States and no vision of decrease in the areas. On the contrary, the company is making an addition to the existing stores, especially for the subsidiary White Barn, focused on candles.

Neil Saunders, the MD of GlobalData Retail, stated regarding the lingerie brand that the rude marketing schemes employed, the environment devoid of light in stores and the glaringly obvious sexuality in the proposals for items are being counterintuitive for the customers these days.

It is important to highlight here that the parent company L Brands is present in countries including the US, the UK, Canada etc. via the brands Pink, Bath & Body Works, Victoria’s Secret and a few more.

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