251 Victoria’s Secret stores will be shut
Victoria’s Secret is closing almost a quarter of its North American stores, another blow for U.S. malls already reeling from the pandemic shutdown as the lingerie chain grapples with changing consumer tastes and financial challenges.
Parent company L Brands Inc. said in an earnings report that it will close 251 stores by the end of this year, accounting for about 23 percent of its domestic locations.
More store closures could happen in the coming years, Victoria’s Secret interim CEO Stuart Burgdoerfer said on a call with analysts Thursday. L Brands is also set to close 51 stores of its other brand, Bath & Body Works.
The company expects that Victoria’s Secret stores will reopen by the end of July. Shares rose as much as 18 percent in New York trading, based on strong results at Bath & Body Works.
J.C. Penney on Monday said it would close more than a quarter of its stores. Nordstrom Inc. has said it will close 16 full-line stores and its three Jeffrey boutiques.
Victoria’s Secret has started to reopen a small set of locations, and initial signs are strong, L
Brands’ new CEO Andrew Meslow said on a call with investors Thursday.
Early signs from retailers such as Macy’s Inc. and Kohl’s Corp that have begun reopening locations show that stores’ sales volume are about half of what’s normal.
• Best Buy said Thursday that its first quarter sales fell 6.3 percent to $8.6 billion as it posted a net profit of $159 million. The chain benefited as consumers sought “work or learn from home” products, as well as gaming merchandise. Domestically, its comparable online sales surged 155 percent from last year.
• TJX, the owner of T.J. Maxx, Marshalls and HomeGoods, said its sales fell 52 percent to $4.4 billion in the first quarter because of store closings, pushing the company to a net loss of $887 million. But the off-price retailer said it was encouraged by “very strong sales” as it started to resume business. The company has fully or partially reopened stores in 25 states.