- Huw Hughes |
L Brands is planning to close around a quarter of the Victoria’s Secret stores across the US and Canada in the coming months.
The company said it plans to close 250 stores and might close more in the coming years.
In an earnings call on Thursday, chief financial officer Stuart Burgdoerfer said it was a "very significant decision" intended to "strengthen" the brand, CNN reports.
The news comes just weeks after the lingerie brand’s half-billion dollar plan to go private collapsed.
For the first quarter of the year, net revenues at L Brands fell 37.1 percent to 1.654 billion dollars. Like many companies, it was heavily impacted by store closures and falling consumer demand for clothing amid international Covid-19 lockdowns.
Victoria’s Secret saw the biggest decline in sales, from 1.5 billion dollars in the first quarter of last year to 821.5 million dollars for the first quarter of this year.
The brand has struggled in recent years to keep up with changing consumer behaviour and has drawn criticism for objectifying women and creating over-sexualised designs.
In November, it announced it was cancelling its annual fashion show in a bid to shift its marketing strategy following criticism and weak financial results.
Photo credit: L Brands resources