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Victoria's Secret Parents L Brands Sharing Tank, Touch Near 10-Year Low



People are seen inside the newly opened Victoria's Secret store in Shanghai on February 24, 2017.

Johannes Eisele | AFP | Getty Images

The stock of underwear maker Victoria & # 39; s Secret & # 39; s parent company L Brands continued its month-long slide Thursday, approaching a decade low on the heels of a dismal revenue report released the night before.

Shares fell by as much as 1

2% at one point, touching $ 17.61 – a price that has not been seen since December 2009. Shares traded down about 9% mid-day. The stock has fallen more than 42% from a year ago.

In a call with analysts on Thursday morning, executives said they were trying new items and plan to launch new marketing ahead of the holidays to help revive the ailing Victoria's Secret business.

"The reaction to the new things has been very good," said CFO Stuart Burgdoerfer. "That said, so far it has not been enough to overcome the weakness of the balance of the underwear range, including the effect of heavy promotions from a year ago that will continue through the fall season."

The same-store sales for L Brand's fiscal second quarter were reduced by 1% overall, lower than expected growth of 0.3%. Sales of the same store at Victoria's Secret dropped 6%, while Bath & Body sales were up 8%. Analysts had expected sales in the same store to be down just 3.9% at Victoria's Secret and up 6.3% at Bath & Body Works.

"L Brands still thinks Victoria & # 39; s Secret issues are product-related, but we think they are brand and competition-related, which means these issues are difficult to fix," Jefferies analyst Randal Konik said in a note to clients. "Components for Bath & Body Works are declining and margins are squeezed, which means biz has reached the top."

It was announced in a company board memo earlier this month that L Brands would lose its chief of marketing, Edward Razek. He resigned after pushing an over-the-top sexy image for the Victoria's Secret brand as long as he had been there since the early 1980s. None other than CEO Les Wexner had been with the company for so long.

But recently, the same image that once strengthened Victoria's Secret, haunted the company as women steer clear of the brand's hot pink, lacy and bejeweled lingerie, opting instead for bra and lingerie brands like Lively or Third Love as promotes inclusive sizing – not models that knock down a runway.

As it tries to turn things around, Victoria's Secret will no longer broadcast its annual fashion show. It also recently signed the first open transgender model.

L Brands executives on Thursday did not mention the CEO's ties to the pet animal Jeffrey Epstein. The company said last month that it hired a law firm to investigate the situation between Wexner and Epstein, who committed suicide in his prison cell earlier this month.


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