L Brands to Reorganize Victoria's Secret -- WSJ
08 April 2016 - 4:31PM
Dow Jones News
By Joshua Jamerson
L Brands Inc. said it would restructure its Victoria's Secret
business in an attempt to streamline operations and focus more on
its core merchandise, as the retailer reported better-than-expected
growth Thursday across its established stores in March.
The restructuring comes two months after Sharen Turney resigned
as Victoria's Secret chief executive.
L Brands said it plans to reorganize Victoria's Secret into
three units: Victoria's Secret Lingerie, PINK and Victoria's Secret
Beauty. Leaders at each unit will report directly to Chairman and
Chief Executive Leslie Wexner.
Victoria's Secret will cut about 200 home office associates in
New York and in Columbus, Ohio, where the company is based. The
company also will eliminate certain merchandise categories and
focus resources on core merchandise, where L Brands sees the most
potential for growth.
Mr. Wexner said the moves are an effort in "narrowing our focus
and simplifying our operating model," adding that the company is
"taking care to support" those who would lose jobs.
Victoria's Secret same-store sales grew 2% in March as a decline
in the beauty segment was offset by growth in PINK and lingerie.
The company also said the shift of the Easter holiday into March
this year from April last year hurt results.
Analysts, on average, expected 1.4% growth in March, according
to Consensus Metrix.
Company wide, same-store sales rose 3% at L Brands, also the
parent of Bath & Body Works and La Senza. Analysts, on average,
had expected 1.52%.
L Brands said total company sales increased 4.7% to $1.03
billion in March.
Shares, down 11% in the past three months, were inactive
premarket.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
April 08, 2016 02:16 ET (06:16 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
LandBridge (NYSE:LB)
Historical Stock Chart
From Jun 2024 to Jul 2024
LandBridge (NYSE:LB)
Historical Stock Chart
From Jul 2023 to Jul 2024