L Brands today reported that comparable-store sales fell by 13 percent in February, slightly better than Wall Street’s estimates. Its shares were up slightly in morning trading.
Total sales for February fell to $765.5 million, down from $849.3 million for the same month last year.
The sales decline was driven by a 16 percent drop in comparable-store sales at the Columbus-based retailer’s Victoria’s Secret brand. The decline, while stiff, was slightly better than Wall Street analysts had anticipated.
While the lingerie chain has seen comparable-store sales hurt by its ongoing exit of swimwear and apparel, there were other reasons for sales decline, said Amie Preston, chief investor relations officer.
The main reason: “challenging mall traffic levels,” Preston said. That, in turn, led to lower profit margins, “primarily due to promotional (discount) events to drive traffic.”
The retailer’s Bath & Body Works chain saw comparable-store sales drop by 4 percent in February, slightly better than Wall Street expectations. The decline was also blamed on challenging traffic at malls, Preston said. To bring in customers, the chain also was pushed to offer discounts, which led to lower profit margins.
Looking ahead to March, L Brands predicts a similar decline in comparable-store sales in some part due to the later Easter this year that will hurt on March comparable-store sales.
Source : Dispatch
