Victoria's Secret store London, UK - 2017

Things just keep getting worse for Victoria’s Secret, whose parent L Brands Inc. saw net sales and comparable-store sales fall for the seventh straight month.

The retailer said monthly same-store sales dropped 1.2 percent, while comparable-store sales slipped 7 percent in July.

Net sales for the four weeks ended July 29 were $767.7 million, compared with net sales of $777 million in July 2016. Comps slipped to 7 percent, impacted by the exit of the swim and apparel categories.

Victoria’s Secret has been struggling for the last year or so, caught off guard by the decline in demand for push-up bras and a move toward a more natural look. The company in May decided to exit swimwear and most apparel offerings from Victoria’s Secret, as well as abandon its well-known catalogue business.

For the 13 weeks ended July 29, the company said sales slipped 4.7 percent to $2.76 billion from $2.89 billion in the year-ago period. Comps in the quarter fell 8 percent.

L Brands expects second-quarter earnings per share at the high range of its previous guidance of 40 cents to 45 cents a share.

Investors weren’t thrilled and sent shares of L Brands down 1.2 percent to $43.79 at 10:07 a.m.

Roxanne Meyer, senior analyst at MKM Partners, said the T-shirt bra at Victoria’s Secret “performed well and exceeded expectations.” She also noted that sales of bralettes grew in July. However, the analyst noted that comps at the Victoria’s Secret brand  fell 10 percent in July.

Meyer said the “challenge at Victoria’s Secret continues to be traffic.” According to Meyer, that could remain as an overhang as the brand “laps intense promotional activity in [the third quarter], requiring [Victoria’s Secret] to remain promotional to some extent.”

Separately, The Buckle Inc. reported same-store sales results, noting that net sales for the four-week period ended July 29 fell 9 percent to $60.6 million from $66.5 million in the same 2016 period. Comps in the period fell 8.4 percent.

For the 13 weeks, net sales declined 7.8 percent to $195.7 million from $212.2 million last year, while comps decreased 7.7 percent for the period. Shares of The Buckle were down 1.5 percent to $16.90 at 10:07 a.m.

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