Victoria's Secret closing 53 stores in 2019
A popular retailer is closing more stores than usual after reporting declining profits. L
A popular retailer is closing more stores than usual after reporting declining profits.
L Brands, the parent company of Victoria's Secret, PINK, Bath & Body Works, and White Barn, reported it's quarterly and 2018 revenues on Wednesday.
As part of that, the brand announced their decision to close 53 stores in North America in 2019, following a round of 30 closures from 2018.
During an earnings call on Thursday, Stuart Burgdoerfer, L Brands CFO said " … we close stores every year. So that's an ongoing part of running the business. How we go about it is we look at current and projected performance, sales, profit, cash flow. We look at trade area dynamics and how store openings and closings affect nearby stores and, to a lesser extent, our online business. And based on those historic and projected results not just for the store in question but for nearby stores, we make judgments about what the projected sales profit cash flow results would be also in relation to what it may cost to exit a store. And based on those criteria, we close stores."
The brand says they typically close approximately 15 stores in a year.
In their fourth-quarter report, L Brands said that earnings per share for the 13-week fourth quarter ended Feb. 2, 2019, were down $1.94 compared to $2.33 for the 14-week quarter ended Feb. 3, 2018.
The company says they not yet released a list of which stores will be closed.
According to the company website, L Brands currently owns 957 stores in the U.S.
