L Brands, parent company of Victoria’s Secret and Bath & Body Works, anticipates another holiday season cushioned by promotions, discounts and sales.
According to The Columbus Dispatch, Victoria’s Secret CEO and president, Sharen Turney, said, “If we have to turn on (discounting), we’re ready.” However, the lingerie brand is betting on one of its largest holiday launches, Dream Angels, to boost sales.
The remarks came last week during L Brands’ second-quarter earnings conference call with analysts. L Brands reported better than expected results, including a 6 percent increase in net sales for the 13 weeks ended Aug. 2, 2014. The company also said comparable store sales grew 3 percent during the second quarter compared to the period the year prior.
L Brands is focusing on reacting quickly to consumer trends and needs. Turney reported that Victoria’s Secret has cut manufacturing and lead time in half. Likewise, Bath & Body Works is moving toward rapid replenishment in all of its doors.
Looking forward, L Brands is raising its full-year earnings forecast to $3.03 to $3.18 per share from $3.00 to $3.15. The company owns 2,942 specialty stores in the United States, Canada and the United Kingdom, and its brands are sold in approximately 600 franchised locations worldwide.
Victoria’s Secret could see another 40 to 50 locations in the Middle East, Turkey, China and Western Europe in the coming years. The Columbus Dispatch reported that the chain is using small-scale Victoria’s Secret beauty and accessories stores as indicators for expansion of its stores with full product lines.