Victoria’s Secret needs a makeover.
The lingerie brand, owned by L Brands, is still trying to sell sexy, but it isn’t working. Same-store sales have fallen for the past three years, as women turn away from its bedazzled bras and underwear and opt for comfortable pieces in more neutral colors. A new group of start-ups like Adore Me, Third Love, Lively, Cuup and Knix are surging in popularity on Instagramand winning over customers.
“The pivotal question on the stock is can L Brands rehabilitate the Victoria’s Secret brand image,” UBS analyst Jay Sole said in a note to clients earlier this week, ahead of L Brand’s monthly sales report. He said he noticed Victoria’s Secret’s January promotions “increased significantly” from a year ago. That typically means a company didn’t sell enough during the holiday season and needs to cut prices to lure shoppers in.