Original title: Wei Mi’s parent company Q3 loses money to expand veteran sexy

Victoria's Secret loss expands where old sexy lingerie goes 01

Victoria’s Secret 

Author: Katie Chen
On November 21, Victoria’s parent company L Brands released its third-quarter financial report. Data show that during the reporting period, L Brands ’net loss expanded nearly 6 times, from the US $ 2.8 million in the same period last year to the US $ 252 million; net fell 4% year-on-year to the US $ 2.677 billion, and same-store fell 2% year-on-year.

The performance of L Brands’ main Victoria Secret also continued to deteriorate. Specifically, the sales of the Wei Mi were US $ 1.412 billion, compared with the US $ 1.529 billion in the same period last year, and comparable sales fell by 2%. It is worth noting that, according to reporter statistics, this is the sixth quarter of the Wei Mi recorded sales decline.
In addition, L Brands had an operating loss of US $ 151.2 million in the third quarter and an operating profit of US $ 54.4 million in the same period last year; a net loss of US $ 252 million and a net loss of US $ 42.8 million in the same period last year; a loss of US $ 0.91 per share and a loss of US $ 0.16 per share in the same period last year.
Adjusted operating profit was $ 96.3 million, compared with $ 155.6 million in the same period last year; adjusted was $ 5.7 million, compared with $ 45 million in the same period last year; adjusted earnings per share were $ 0.02, compared with $ 0.16 in the same period last year.

After falling from the altar, Wei Mi tried to save himself. One of the most important measures was the suspension of Wei Mi Xiu. Leslie Wexner, chairman, and CEO of the L Brands Group, once said: “ is an ever-changing industry that must be developed and innovated to succeed. TV and the Internet are no longer suitable for big shows.
Also, Wei Mi is experiencing personnel changes. According to CNBC reports, the company ’s headquarters in Columbus, Ohio, laid off about 50 employees on October 9 and 10, including junior employees and senior leaders. The number of layoffs accounted for 15% of the total number of employees at the headquarters. The reporter sought confirmation from Victoria ’s secret party, and the other party expressed inconvenience to respond.
Former L Brands Chief Officer Ed Razek officially resigned in August, and by the end of 2018, former Victoria Secret CEO Jan Singer also suddenly resigned.
In more than 20 years of vigorous development of Wei Mi, the brand’s performance has gone downhill. Behind the decline in performance, there are many problems such as the rise of feminism, the aging of Victoria’s Secret brand, and the difficulty of products to meet demand. Among them, the sales method of online celebrities in the Internet era may also be a new challenge.
In 2001, when the Victoria’s Secret Show first aired on ABC, supermodel Heidi Klum wore a FantasyBra catwalk, bringing global attention to the brand. Victoria’s Secret Show has become the global weathervane for lingerie.

However, data show that in recent years, the ratings of Wei Mixiu have plummeted. The data released by Showbuzz shows that since 2011, the ratings of Victoria’s Secret Show have shown a rapid downward trend. In 2015, the ratings of the Victoria ’s Secret Show plummeted by 30%, and the number of viewers fell to 6.59 million. The main audience ’s audience aged 18 to 49 was 2.3%. In 2016, the audience ’s age of 18 to 49 was watching The rate was only 2.1%, down 9% year-on-year compared with 2015. In 2017, Wei Mixiu moved to Shanghai to seek to develop the Chinese market. However, the audience rating fell 3%, and the total audience did not exceed 5 million, of which 18 to 49 The audience rating for the old audience is only 1.5%.
By 2018, the ratings of the Victoria’s Secret Show broadcast by ABC continued to decline, and the total audience dropped to 3.27 million, of which the audience rating of 18 to 49 years old was only 0.9%. Also, the total volume of the 2018 Victoria’s Secret Show on Tencent’s platform was 21,126,300, which was a significant decline from the previous 36.303.50 million. Luxury expert Zhou Ting, director of the VIP Research Institute, told the News reporter that for Victoria’s Secret, it is normal for the show to stop broadcasting. Nowadays the information is developed, the audience pays much attention, and the traditional catwalk has been greatly challenged. Also, the appeal of supermodels has been diluted by countless KOLs, so Victoria’s Secret Show is not innovative and does not rely more on the Internet. As of the close of November 20th, L Brands’ share price has plummeted 7.5% to $ 1,589 million, with the latest market value of about $ 4.4 billion.

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