Victoria’s Secret to close 250 stores in U.S. and Canada

Victoria's Secret

Victoria's Secret

Many retailers are losing their grip with much of the economy shuttered by coronavirus lockdowns.

"We continue to believe Victoria's Secret sits in the interesting position of being one of the largest brands in the history of time, and yet one that, for all intents and purposes, does not make money", BMO analyst Simeon Siegel wrote in a research report.

Victoria's Secret is slimming down - and Wall Street likes the new look.

L Brands, which owns the company, said the 250 store closures might just be the start: It warned it could close more stores over the next few years.

Global COVID-19 cases cross 5 mn: Johns Hopkins
China , ground zero of the virus, has registered 84,063 cases so far and its death toll continues to stand at 4,638. The UK is reportedly one of them, however, the NHS has warned that the country is "running out of time".

Bath & Body Works, another L Brands retail chain, announced a 20 percent increase in sales, as consumers raced to by soap and sanitizer amid the pandemic. There are more than 1,000 Victoria's Secret stores in the USA and 42 in New Jersey, according to the company's website. The brand has roughly 1,700 stores in North America.

Canada Goose suspended the long-term outlook it initially provided in May 2019 as it did not account for the coronavirus pandemic, and reiterated its new outlook for the 2020 financial year that it noted at its last quarterly earnings in February.

Victoria's Secret sales have dropped even further by 46% in the first quarter, according to L Brands. As the deal fell through because of the coronavirus pandemic, L Brands has now made the decision to turn Victoria's Secret into a separate, standalone company with plans to spinoff Bath & Body Works into a public company.

Other established brands have taken a hit too, such as Neiman Marcus and J. Crew, both of which filed for bankruptcy in early May.

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