Hotline: 1800 102 2007
X
Search Business Opportunities
Sep, 11 2018

Victoria's Secret and its Pink franchise begin to decline

The August sales of Victoria's Secret's same-store dropped by 5% compared to the previous year.

According to analysts, Victoria's Secret and its Pink branch, owned by L Brands, is starting to decline. The August sales of Victoria's Secret's same-store dropped by 5% compared to the previous year.

Randal Konik, who led a team of analysts, has warned that Victoria's Secret was taking a scary step in promoting its "buy 2 get 1 free" Body By Victoria bras offer and selling $3 panties for its Pink members. "Victoria's Secret brand is broken and Pink is now breaking," Konik stated.

Victoria's Secret's owner L Brands has also made the announcement that Denise Landman, CEO of Victoria's Secret Pink brand, will retire. He will be replaced by a leader from the Bath & Body Works [BBW] franchise.

Konik said, “BBW continues to be strong, with favorable customer acceptance to new product driving [comparable sales] up 15%, well ahead of the consensus of 5%. However, we note that the business is cyclical, and we think it will eventually moderate."

"With little value left for VS, Pink in the early innings of what we believe will be a long decline, and BBW, while strong, not capable of supporting the entire business, we see cash flow prospects declining and believe shares can move much lower," Konik further added.

Comment
image
Related opportunities
  • About Us: Cream and Fudge offers a mix-in concept of hand..
    Locations looking for expansion Karnataka
    Establishment year 1996
    Franchising Launch Date 2007
    Investment size Rs. 10lac - 20lac
    Space required 150
    Franchise Outlets -NA-
    Franchise Type -NA-
    Headquater Bangalore Urban District Karnataka
  • Fashion accessories - women
    About Us: COVO is a premium accessories brand for Men and..
    Locations looking for expansion Karnataka
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size Rs. 30lac - 50lac
    Space required 500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Bangalore Karnataka
  • Career Counselling & Brain Programming
    About Us: BrainWonders brings a promising Dermatoglyphics Multiple Intelligence Test franchise..
    Locations looking for expansion Karnataka
    Establishment year 2011
    Franchising Launch Date 2011
    Investment size Rs. 2lac - 5lac
    Space required 250
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Bangalore Urban District Karnataka
  • Academy of Digital Arts - an opportunity for you to..
    Locations looking for expansion Maharashtra
    Establishment year 2009
    Franchising Launch Date 2015
    Investment size Rs. 2lac - 5lac
    Space required 500
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Borivali west Maharashtra
Insta-Subscribe to
Entrepreneur
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities