Victoria’s Secret saw same-store sales slip in June.
Jefferies analyst Randal Konik says the weak sales are reflective of more struggles to come at Victoria’s Secret parent L Brands.
L Brands shares were down more than 11% on Thursday.
Watch L Brands trade in real time here.
The struggles keep coming for L Brands and its Victoria’s Secret brand.
Victoria’s Secret comparable sales fell 1% in June, and store-only comparables fell 6%. Those numbers were at least partially responsible for the more than 11% drop L Brands shares suffered on Thursday.
And the numbers are the lastest example of how Victoria’s Secret is rapidly losing market share to competitors like American Eagle Outfitters’ Aerie, and is turning to discounts and promotions to turn things around. The struggles have been a big reason for the 45% drop in L Brands shares this year.
“It’s Game Over For Victoria’s Secret,” Jefferies analyst Randal Konik wrote in a note sent out to clients after the sales figures were released. Victoria’s Secret made up 47% of total L Brands revenue in the first-quarter.
Konik thinks the bad sales numbers not only reflect that the brand is struggling now, but also that …read more
Source:: Businessinsider – Finance