Shares of Victoria's Secret parent L Brands are up despite bra sales being down.
The Ohio-based brand, which also owns Bath and Body Works, said lace-trimmed items, including bras and women’s lingerie, dipped 12 percent in the last two months of 2019. That followed a 4 percent drop in the category last year and a dip in foot traffic in stores.
Net sales for L Bands reached $3.9 billion for the nine weeks ending Jan. 4, 2020, the firm said. That’s compared to $4 billion for the nine weeks ended Jan. 5, 2019. Comparable sales took a tumble, too, falling 3 percent for the nine weeks ended Jan. 4, 2020.
Still, L Brands shares rose 4.5 percent to $18.9 Thursday, as executives said Victoria’s Secret’s semi-annual sale is tracking well and women’s lingerie margins improved.
“Bra sales were down, but margins were better,” Gabriella Santaniello, a retail consultant and president of A Line Partners, told The New York Post. She said the reason for the decline was because the company was “less promotional” over the holiday season.
L Brands said it expects to report fourth-quarter earnings of about $1.85 per share compared to its previous guidance of $2. Its stock is down 26 percent on the year but has ticked up nearly 12 percent in the last three months and 3 percent in the last week.
The company brought in $13.2 billion in sales and revenue last year.