L Brands (NYSE:LB) shares had their worst day in more than four months as one of the company’s brands experienced weak sales in the month of June.
The apparel maker announced that its Victoria’s Secret brand posted a same-store sales decline of 1% for the month of June. The company hoped that its decision to launch an extended semi-annual sale would boost this figure but it appears as if the brand’s popularity waned slightly during the month.
L Brands usually gets a boost from its semi-annual sale from the Victoria’s Secret brand but the company noted that traffic was underwhelming during this sales, which pushed it to lower its prices even more. The company’s Chief Investor Relations Officer Amie Preston noted this weakness, while sales of its PINK brand were also unable to hit their mark.
“The semi-annual sale had a soft-start with negative traffic levels,” Preston wrote. “In response, we extended the sale time period versus last year by two weeks and reduced pricing to drive traffic and clear inventory, which resulted in merchandise margin rates down significantly to last year.”
L Brands did announce one positive figure during the month as it said that net sales were up by 6% to $1.282 billion from the beginning of June until July 7 compared to the year-ago period.
LB stock was down 10.9% by early afternoon Thursday following the news, with shares now selling at $32.77 apiece.
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