L Brands Sales Fall Another 5% in May
May marks the fifth straight month of declines for the Victoria’s Secret operator.
L Brands is sticking with one trend lately — sales declines.
The operator of Victoria’s Secret and Bath & Body Works said net sales fell another 5 percent in May hitting $774.3 million compared to $816.6 million a year ago. Comparable-store sales also fell by 7 percent.
L Brands also saw sales fall 5 percent during April, and the company has posted sales declines every month this year.
For the year so far, net sales are down 6 percent to $3.21 billion and comparable-store sales are down 9 percent.
The company is still citing last year’s decision to exit swim and most apparel with Victoria’s Secret as heavily impacting sales. For May, L Brands said the exit affected the lingerie company’s comp sales by 14 percentage points.
The May numbers come shortly after L Brands released its first-quarter results, showing net income down to $94.1 million, a 38 percent drop from 2016, but company executives still spoke of “future growth.”
Executive vice president and chief financial officer Stuart Burgdoerfer said at the time that L Brands is still planning to hit 10 percent growth in operating income for the year, namely by “focusing on the things we can control,” like inventory management and a disciplined approach to expenses and capital spending.
Bath & Body Works chief executive officer Nicholas Coe also noted that the first quarter has been “one of the most aggressive testing periods for us.”
For the full year, excluding the continued negative impact of the swim and apparel exit, L Brands said go-forward business categories should see flat to slightly positive sales trends.