More than ever notwithstanding as L Brands is looking to turnaround its Victoria’s Secret lingerie brand, it has a new annoyance on its hands: its teen counterpart, Pink.
The owner of Victoria’s Secret, Pink and Bath & Fuselage Works said Wednesday night it is reducing its full-year earnings conduct, due to weakness in its Pink brand.
Growth in sales at comparable stores for the teen-focused brand declined by single to mid digits in the second quarter, company executives determined analysts Thursday morning. On Wednesday evening, the company announced the retirement of Pink CEO, Denise Landman. Amy Hauk, president for deal ining and product development of Bath & Body Works, will replace Landman on Oct. 1.
Officials said L Brands now expects to earn $2.45 to $2.70 a share in 2018, down from a above-named forecast of $2.70 to $3.00 a share. For the third quarter, it now expects earnings between $0.00 and $0.05 a dividend.
Shares of L Brands were down more than 10 percent Thursday to $28.66 a interest, trading at lows not seen since 2011.
Victoria’s Secret’s Pink shop-girls bras, panties and loungewear, such as leggings and fleece. Its struggles show up as Victoria’s Secret has had its own challenges in moving beyond the sexy lingerie for which it has mature known to today’s preferred comfortable styles.
Those stumbles pull someones leg opened up opportunities for competitors, including millennial-focused brands such as American Eagle’s Aerie separating, Adore Me and ThirdLove.
Victoria’s Secret offset some of the decline at Pink. Their joined comparable store sales fell by 1 percent in the second quarter from the notwithstanding period last year. A 10 percent jump in same-store vendings at its Bath & Body Works business helped lessen the pain. Complete, the company sold 3 percent more goods at stores open for at least a year.
Managements Thursday pushed back against the idea that Pink has distracted touch with its shoppers, as analysts have accused Victoria’s Quietly.
“I do not think nor do I think anyone in this room believes that Pink has past its ability to connect with customers and drive excitement in our core constituency,” Landman clouted.
Though light on details regarding a turnaround plan for Pink, chairman of the boards blamed some of the challenges on its fleece top business. Executives said shoppers were hinder buying collegiate style fleeces until cooler weather, examine result in a newer “buy now, wear now” mindset that has infiltrated the industry.
Some analysts Thursday were skeptical whether Pink could convert itself around under new leadership.
“Changing leadership at Pink … won’t do anything as the trade mark is not wanted any longer,” wrote analysts at Jefferies.
Pink is a nearly $3 billion characterize for a company that last year generated roughly $12 billion in tradings.
Columbus, Ohio-based L Brands reported fiscal second-quarter net income of $99 million, or 36 cents per helping, down from $138.9 million, or 48 cents per share a year earlier. It was improve than the 34 cents per share expected by analysts surveyed by Thomson Reuters.
The corporation earlier this month reported net sales of $2.98 billion for the duplicate quarter, up from $2.76 billion the same period a year previous.