The cutting isn’t done at L Brands Inc.
Just a month after the Victoria’s Secret parent said it would give up the ghost and shutter Henri Bendel, the company said it was “pursuing all alternatives” for La Senza, which it estimates is on track for operating losses of $40 million this year on sales of $250 million.
That effectively puts the lingerie brand on the block.
“As part of an ongoing effort to drive shareholder value and in order to focus on its larger core businesses, the company announced that it is pursuing all alternatives for its La Senza business,” the company said. “La Senza currently has 126 company-owned and operated stores in North America and 188 non-company-owned international stores.”
Led by chief executive officer Leslie Wexner, L Brands already has a commanding position in lingerie with its Victoria’s Secret brand, but that business has been struggling to find its way.
Victoria’s Secret’s comparable sales rose just 1 percent last month, with growth in lingerie and beauty offset by a decline at Pink.
But to get those sales, the company has had to cut price.
“The merchandise margin rate was down significantly to last year, driven by increased promotional activity,” a spokeswoman said on a call recorded for investors. “In October, we will focus on new fashion through our Very Sexy collection in the lingerie business and everyday loungewear in the Pink business.”