Victoria’s Secret has a problem, and it’s not much of a secret: “Athleisure” is upending the bra business.Well, here's hoping they make it. They've got some of the hottest babes in the business modeling their stuff.
Growth is slowing in the retailer’s core bra business, which accounts for about 35% of sales at its parent company, L Brands Inc. as shoppers seek comfort instead of flash from their undergarments. In the first quarter, the retailer said bra sales rose less than 10%, down from growth rates in the midteens in prior quarters. Shares of L Brands have tumbled 29% so far this year.
Victoria’s Secret has been aggressively marketing its “bralettes” window displays and email messages that say “no padding is sexy.”
“It’s not a sick business, but it’s not growing at the rate we want,” the company’s finance chief, Stuart Burgdoerfer, said in May. The retailer has taken steps in recent months to fix the issue. It has brought in new leadership, pared its merchandise and responded to the athleisure trend...
Thursday, June 30, 2016
At Heat Street: