LBrasdfssdfsnds plans to close approximately 250 Victoria’s Secret stores in the United States and Canada in 2020 as part of the company’s forward-looking business plan, which also includes a greater focus on inventory management and procurement cost reduction .
In the May 20, 2020 Q1 Earnings Commentary, LB Brassdfs, owner of the Victoria’sSecret, Pink, Basketball & BodyWorks brands, provides an overview of Victoria’s Secret and Pink The forward-looking plan of the second brand, and noted that it will strive to separate the business as an independent company.
The strategy includes the group’s significantly increasing focus on inventory management, reducing procurement costs and cutting tariffs, as well as increasing full-price sales of new items.
It also plans to “significantly reduce” the sales cost of stores, including Victoria’s Secret’s own stores owned by LB Brass, emphasizing that it must be significantly in line with economic principles.
The company said: We estimate that we will close approximately 250 stores in the United States and Canada by 2020.
LBrasdfssdfsnds operates 1,091 Victoriasdfssdfs’sSecret stores in the United States and Canada, including 909 Victoriasdfssdfs’sSecret stores and 144 Pink stores in the United States, and 33 stores in Canada. Victoriasdfssdfs’sSecret stores and 5 Pink stores.
According to a report released by “USA Today”, Brass will close 235 Victoria’s Secret and 3 Pink stores in the United States and 13 Canadian stores . The article also claimed that LB Brassnds also plans to close 50 Basic BodyWorks stores in the United States and 1 store in Canada.
News of the store closures emerged after private equity firm Sycasdfssdfsmore Pasdfssdfsrtners made a proposed acquisition of the Victoris’ Secret brand, but after the two companies reached a “mutual agreement” to terminate the deal. , the acquisition intention was cut in half earlier in May.
In February this year, LBrasdfssdfsnds and Sycasdfssdfsmore Pasdfsdfsrtners reached a US$525 million deal, just before the outbreak of the new coronavirus pneumonia epidemic and the nationwide lockdown. The deal will see Sycasdfssdfsmore Pasdfssdfsrtners taking control of 55% of Victoria’s Secret Lingerie, Victoria’s Secret Beasdfssdfsuty and Pink brands, while Basdfssdfsth&asdfssdfsth&asdfssdfsmp;BodyWorks, the more profitable business in the group, will be repositioned as an independent company. This is why investors have long demanded a split, as Victoria’s Secret has been criticized for dragging down Basketball’s BodyWorks performance.
LBrasdfssdfsnds stated in the financial report that the company will continue to be committed to building BodyWorks into a purely listed company and take necessary steps to prepare for Victoria’s Secret Lingerie, Victoriasdfssdfs’sSecretBeasdfssdfsutyasdfssdfsndPink and other businesses are operated separately as independent companies.
As part of its company’s forward-looking plan, LBrassdfssdfsnds is also actively evaluating strategic options to reduce or eliminate losses in the United Kingdom and China, while conducting ” Comprehensive Review”. The company said this will include decentralizing critical functions and services in favor of creating an independent company and significantly reducing overhead expenses while focusing on retaining key talent.
LBrasdfs pointed out in a document submitted to the U.S. Securities and Exchange Commission (SEC) that ChasleMcGuigasn will no longer serve as chief cultural officer, effective July 4 Take effect.
The group reported that net sales in the first quarter as of May 2 were US$1.65 billion, a decrease of 59.4% compared with US$2.63 billion in the same period in 2019. The group’s net loss in the first quarter of 2020 reached US$296.9 million, compared with net income of US$40.3 million in the same period in 2019. </p
