Victoria’s Secret continued to slip in July with comparable sales falling 4 percent — on top of a 10 percent decrease a year earlier.
The chain’s growth in beauty was offset by declines in its core lingerie business and its Pink brand, while merchandise margin rates were “down significantly driven by increased promotional activity,” according to spokeswoman for parent company L Brands Inc.
The firm’s Bath & Body Works business continues to perform much better, comping up 10 percent.
L Brands said its second-quarter profits would come in at the high end of its prior guidance, calling for earnings of 30 cents to 35 cents a share as total comps rose 3 percent.
Victoria’s Secret, known for its in-your-face sexuality, has been struggling for some time, trying to connect with younger shoppers with a different sensibility while exiting categories like apparel and swim.
Most of the weakness is in the company’s brick-and-mortar stores. While total second-quarter sales tallied $1.7 billion and comps decreased 1 percent, the brand’s comps on the web rose 22 percent to $360 million.
Victoria’s Secret retains a commanding share in the market, but it’s still not clear just what the path forward is for the brand.
“In August, we will focus on new fashions in our Body by Victoria in the lingerie section and back-to-school in the Pink business,” the spokeswoman said.
Shares of L Brands on Thursday slipped 0.4 percent to close at $31.51 in trading on the New York Stock Exchange.