The Q3 sales of Victoria's Secret are out and shows that it has fallen sharply. The lingerie giant is in panic mode and on the look out for a new marketing strategy to stay relevant in the market. It's parent company L brands showed a loss of 3.5 percent in Q3 to 2.7 billion US dollars and Victoria's Secret showed a 7.6 percent decline in its sales and is down to just 1.41 billion U.S. dollars.
This is indeed an alarming trend to the lingerie giant and if they don't pull up their socks for FY20, their sales might further drop to new lows as new lingerie brands will do their best to stamp them down, making Victoria's Secret irrelevant in the minds of women across the world.
There's stock market trouble for Victoria's Secret too
Apart from dwindling sales and cancelling their iconic fashion show, Victoria's Secret faces another major hurdle, that is their run in the US stock market. The parent company L brands allowed the Royal Bank of Canada to downgrade their shares from an "outperform" rating to a "sector perform" rating and decreased their target price.
Citigroup analyst Paul Lejuez commented that the management is "slow to implement meaningful change" with "cultural norms shifting away" from the company.
Will Victoria's Secret survive?
Looking at how low-key the flamboyant lingerie brand has gone currently in the last few months, it seems like they are reinventing themselves and will be out with a bang in 2020 and surprise everyone with their new marketing strategy. Without a doubt, the brand has tons of loyal customers and supporters who would do anything to keep it alive.
Just one step in the right direction can pull Victoria's Secret's sales up in a jiffy and they're waiting for that one perfect shot to catch up with the market again. Once VS gets back on its feet again, the other new lingerie brands out there will find it difficult to scale up again and pose a new challenge as outperforming Victoria's Secret might look like a herculean task.