Apparel Online India Magazine August 1st Issue 2018 | Page 38

FASHION BUSINESS
No hopes of
revival for
Victoria’s Secret;
analysts say
‘game over’
L Brands Inc., owner of once the most celebrated
lingerie label Victoria’s Secret, has reported
another round of unpredicted drop in sales for
the entity.
Even though the sensual intimates brand
significantly elevated price cuts in its inventory
and held a long semi-annual sale, it seems like
the allure of Victoria’s Secret has simply died out.
This has led analysts to officially remark that
‘its game over’ for both VS and its sister concern
VS PINK that was till now doing comparatively
better than the former.
Retailers know
consumers are
vacationing
more and are
introducing
a multitude
of product
assortments
to cater to
that gap.
An analyst from Jefferies Financial Group, Randal
Konik noted, “Massive traffic declines, zero
pricing power and subsequent swelling of market
share losses,” which have been an everyday issue
for the lingerie label.
more abstract and contemporary way. Another
trending technique this season is the foiling
technique, in which gold foiling is emerging as a
fast seller across categories.
Retailers know consumers are vacationing
more and are introducing a multitude of
product assortments to cater to that gap. In
comes the rise in luggage, belt bags and fanny
packs, passport holders, sliders, espadrilles,
sunglasses and casual pyjama dressing.
“Consumers are picking up a lot of oversized,
large tote bags with metallic prints in materials
such as canvas and cotton canvas,” Harshad
stated, adding, “A good mix of slogan and
printed styles such as the ikkat print are
performing well in the beach bags category.”
Although basket bags made out of wicker, rattan,
straw and bamboo have been an international
mover this summer, the pickup hasn’t been too
impressive in the domestic segment.
Potential lies beyond cotton and crochet…
The runways are bustling with inspiration,
with modest fashion showing huge prospect.
Another target up for exploration is of the
year-long water sport enthusiasts. Beachwear is
currently riding the high tide, and spotting this
opportunity in time would create the make or
break moment for this category.
38 Apparel Online India | AUGUST 1-15, 2018 | www.apparelresources.com
In June 2018 itself, comparable sales at VS
dropped 1 per cent while store-only sells were
down by 6 per cent, which led to owner L Brands’
stock to drop by a good 11 per cent marking
the biggest intraday decline since March 1. It is
important to note that in total, L Brands’ has seen
a whopping 45 per cent drop in shares within this
year already.
This trend is expected to continue as Konik has
mentioned that per share price for L brands’ could
go as low as US $ 23 (that is 28 per cent below
current level), while the target price sits far ahead
at US $ 38.