Why Victoria’s Secret’s Image Is Hurting L Brands
The glamorous image of Victoria's Secret is no longer adding sparkle to owner L Brands' (NYSE: LB) earnings. The company, which owns the famous lingerie brand as well as bath shop chain Bath & Body Works, has seen sales and profit shrink as customers turn away from Victoria's Secret in favor of options like American Eagle Outfitters' (NYSE: AEO) Aerie and private companies like Harper Wilde and ThirdLove.
So the question is: Why is today's customer leaving Victoria's Secret? It's all about image. Shoppers of the '80s and '90s flocked to Victoria's Secret, known for its push-up bras, statuesque models, and extravagant annual fashion show. Lingerie in silks, satin, and lace was in everyone's closet, and the idea of comfort wasn't a big part of the bra purchase decision. Instead, glamor was the word.
Image source: Getty Images.
Source Fool.com
