Victoria’s Secret to close three of its Canadian stores

Victoria’s Secret to close three of its Canadian stores

The retailer plans to close approximately 53 underperforming Victoria's Secret locations in North America this year.

A drop in sales of 3 per cent over the Christmas period, combined with a fall of in-store sales by 7 per cent, meant shares in the parent company dropped by nearly 9 per cent this week. "We look at trade area dynamics and how store openings and closings affect nearby stores and, to a lesser extent, our online business", said Stuart Burgdoerfer, L Brands CFO. The department store chain said same-store sales fell 4% during the fourth quarter.

The company has not publicly identified which specific stores will be closed. The former president of Tory Burch, John Mehas was finally installed at Victoria's Secret Lingerie this year, along with a new brand head at PINK. The owner, L Brands, is looking to close the worst performing stores. Total sales at Bath & Body Works were $1.950 billion, up from $1.793 billion.

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Longstanding retail mainstays JCPenney and Gap announced store closures Thursday as the companies' sales have dropped. He said Victoria's Secret will place a "dominant focus on the customer and on the merchandise" as it attempts to turn around its business.

L Brands' overall results for its fourth quarter, which includes the Christmas holiday period, were virtually flat as compared to one year earlier. "That's what it is", he said in the interview. This marked its 16th consecutive quarter of double-digit positive growth.

Wall Street reaction to the earnings announcement appeared negative Thursday, with shares in L Brands trading eight per cent lower at 10:30 a.m. than Wednesday's closing level.

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