Victoria’s Secret in decline: Time for more sensible undies? - http://earlyretireonline.com | how to earn money fastAugust 19, 2018 1:01 am
Categorised in: Breaking Financial News
Victoria’s Secret parent company is expected to report yet another quarterly decline in sales next week as the sexy lingerie brand continues to lose market share.
That would be the eighth consecutive quarter in which the company reports sagging sales, according to the New York Post.
The ongoing decline is a staggering fall from grace for the once-dominant brand, whose top celebrity endorsers include big-names like Gisele Bundchen, Adriana Lima, Alessandra Ambrosio, Karlie Kloss, Gigi Hadid, and Kendall Jenner.
The company’s decline can be attributed to a number of factors, including the American consumer’s abandonment of the mall in favor of online shopping, and the changing taste in women’s fashion to include more full-bodied options.
Victoria’s Secret competitors like Adore Me and Third Love have eaten into the company’s market share.
Those firms offer products that many feel are marketed toward a bigger demographic of women who are not stick-figure thin like Victoria’s Secret models.
Aerie, another Victoria’s Secret rival, has seen a surge in demand for its products.
That’s because the company has appealed to women by using unretouched photos in their ads – a marketing concept known by the hashtag #AerieREAL.
Last month, Aerie unveiled a marketing campaign featuring women with medical ailments.
One ad showed a woman with an insulin pump attached to her stomach – a message consistent with the company’s mission of female empowerment.
The trend away from super-thin models and toward fully figured frames is embodied in the newfound rise of plus-sized celebrities Ashley Graham and Iskra Lawrence.
The explosion of the #MeToo movement has also fueled a backlash against the objectification of women as sex objects – a trend that has also contributed to Victoria’s Secret’s shrinking bottom line.
These changes are reflected in the performance of company stock.
Last Christmas, L Brands was selling on Wall Street for more than $60 a share.
This past Friday, the company was selling at just $32.55 per share.
Aerie, meanwhile, is rolling. Its parent company, American Eagle Outfitters, was trading at around $10 a share a year ago.
As of Friday, AEO was being traded on Wall Street for around $28 a share.