Skip to main content
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Victoria’s Secret Considers a Change in Marketing

L Brands' admission that Victoria’s Secret needs change marks a key shift for a company that hasn’t much strayed from its push-up-bra aesthetic, despite consumer values moving towards themes such as female empowerment and body positivity.
Victoria's Secret fashion show 2017 in Shanghai, China | Source: Getty Images
By
  • Bloomberg

COLUMBUS, United States — L Brands Inc.'s embattled Victoria's Secret brand is finally considering the marketing overall investors have been asking for, but those hoping for more concrete details still have longer to wait.

The lingerie chain, which saw another quarter of declining foot traffic and same-store sales in the latest quarter, said it's mulling changes to its advertising approach, with everything on the table from the photographs to the messaging to the way it integrates social media and in-store ads. Victoria's Secret Lingerie Chief Executive John Mehas will become more involved in the marketing, said Stuart Burgdoerfer, L Brands chief financial officer. Ed Razek, the lingerie company's controversial former chief marketing officer, resigned earlier this month.

“Is there an opportunity to make meaningful change in our marketing message and approach for the fourth quarter? The answer is yes,” Burgdoerfer said on the quarterly earnings call Thursday, noting that more information on the shift will be shared at its investor day on September 10. “You’ve read that we’ve had changes in senior leadership in marketing, and I expect that there will be meaningful and hopefully thoughtful change in our marketing approach as we move through fall and into 2020.”

Investors appear wary, sending shares down as much as 13 percent in Thursday trading. If it holds, that puts them on track to close down the most since November.

ADVERTISEMENT

L Brands admitting its Victoria’s Secret marketing needs change marks a key shift for a company that hasn’t much strayed from its push-up-bra aesthetic, even as rivals lean into female empowerment, body positivity and acceptance. It also recently hired its first openly transgender model and in May said it would change the way it does its annual fashion show. But the turnaround is slow, the results show, and the company has said that its No. 1 priority is continuing to improve performance at Victoria’s Secret.

“There couldn’t be greater urgency on management,” Burgdoerfer said. “If you don’t feel urgency, then we aren’t communicating well. We’re about as urgent as we could be.”

The tariff situation also looms over L Brands, as with other retailers. The current trade environment creates “a greater level of uncertainty in forecasting our results for the third and fourth quarter,” it said in the prepared remarks. China represents a little under 20% of L Brands’ total production, so while it may be more insulated than some retailers, it’s still going to feel the pain ahead.

Meanwhile, Bath & Body Works — one of the retailer’s only brights spots — is bracing for its own troubles.

Even as sales at Bath & Body Works outpaced expectations in the latest quarter, the merchandise margin rate was hit by “increases in supply chain and sourcing costs — driven by fuel, wage and tariff pressure,” according to prepared remarks. That pressure will continue into the third and fourth quarters, it said.

By Jordyn Holman, with assistance from Kim Bhasin; editors: Anne Riley Moffat and Jonathan Roeder.

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Retail
Analysis and advice from the front lines of the retail transformation.

What a Fashion Company Is Worth Today

In an era of austerity on Wall Street, apparel businesses are more likely to be valued on their profits rather than sales, which usually means lower payouts for founders and investors. That is, if they can find a buyer in the first place.


What’s the Plan at H&M?

The fast fashion giant occupies a shrinking middle ground between Shein and Zara. New CEO Daniel Ervér can lay out the path forward when the company reports quarterly results this week.


view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
BoF Professional - How to Turn Data Into Meaningful Customer Connections
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
BoF Professional - How to Turn Data Into Meaningful Customer Connections