American conglomerate and owner of Victoria’s Secret and Bath & Body Works, L Brands, has reported a glaring 37.1 per cent decline in revenues for the first quarter ended 2 May.
Image Courtesy: indulgexpress.com
The net sales for the company were down to US $ 1.654 billion from US $ 2.62 billion for the same period last year. The shrinking of sales can be credited to the closure of stores throughout the world and the rapidly reducing consumer spending.
The largest decline came from lingerie brand Victoria’s Secret, whose struggle has not been hidden from the masses.
After Sycamore Partners and L Brands got into a tiff over their agreement to take the brand private, the deal was mutually called off. L Brands has since then planned to take the entity on their own.
The brand’s sales fell to US $ 821 million from US $ 1.5 billion.
Bath & Body Works, on the other hand, is the more lucrative of the two and has seen lesser decline in sales, posting US $ 712 million in net sales as compared to US $ 870 million last year.
Overall, L Brands has posted a net loss of US $ 296.9 million or US $ 1.07 per share, which is a huge decline from the US $ 40.3 million or US $ 0.14 per share it had posted as net income in Q1 2019.
L Brands had earlier announced that is still planning to establish Bath & Body Works as a separate, publicly-traded company, and is preparing the lingerie giant Victoria’s Secret and Pink businesses to operate as a standalone company.