L Brands March sales up 5 percent, to lay off 200 associates

L Brands net sales increased 5 percent to 1.027 billion dollars for the five weeks ended April 2, 2016, compared to 981.2 million dollars for the five weeks ended April 4, 2015. The company also announced restructuring plans, which includes laying off of 200 associates in Columbus and New York.

“Coming off a record year, now is the best time to make improvements … going from best to even better,” said Leslie H. Wexner, Chairman and CEO of the company, adding, “I am certain that these changes are necessary for our industry-leading brands to reach their significant potential … nonetheless, decisions about people are the most difficult ones to make, and we are taking care to support associates who are being affected by these changes.”

March comparable sales down

Comparable sales in increased 3 percent and the company said were negatively impacted by the earlier Easter this year by approximately 1 to 2 points.

The company reported net sales of 1.876 billion dollars for the nine weeks, an increase of 5 percent compared to sales of 1.787 billion dollars for the nine weeks, last fiscal. Comparable sales increased 4 percent for the period under review.

Restructuring at Victoria’s Secret

The company also announced changes at Victoria’s Secret designed to further focus the brand on its core merchandise categories and streamline operations. These actions include restructuring the organisation into three business units: Victoria’s Secret Lingerie, PINK and Victoria’s Secret Beauty. The leaders of these business units will continue to report directly to Wexner.

The plan also includes integrating the direct business as a primarily digital channel within the Victoria’s Secret and PINK businesses to align with how customers engage with the brands, focusing resources on core merchandise categories, where the company believes the greatest growth potential exists such as elimination of certain merchandise categories, evolving how the business connects with customers through more focus on loyalty programs and brand-building engagement rather than traditional catalogues and offers and streamlining the organisation through the elimination of approximately 200 Columbus and New York home office associates.