The holidays were not very merry for L Brands Inc., No. 28 in Internet Retailer 2016 Top 500 Guide, at least when it comes to direct-to-consumer sales of its largest brand, Victoria’s Secret.
L Brands reported Wednesday that Victoria’s Secret’s direct sales, which are largely online, fell 7.2% in the fourth quarter ended Jan. 28. Some of that slowdown may be attributed to the retailer bidding farewell to its trademark print catalogs. Even so, the slowdown outpaced the brand’s store sales, which grew less than 1.0%, and its overall sales, which fell 1.0%. Direct’s share of Victoria’s Secret’s overall sales fell during the quarter to 20.3% from 21.7% a year earlier.
However, it was a different story in the fourth quarter for L Brands’ other large brand, Bath & Body Works. The brand’s direct revenue jumped 25.3% and its overall sales grew 6.6%.
For the fiscal fourth quarter 2016, ended Jan. 28, L Brands reported:
- Total revenue across its stores of $4.490 billion, up 2.2% from $4.395 billion a year earlier.
- Victoria’s Secret Direct revenue, which is largely online, of $526.1 million, down 7.2% from $567.1 million.
- Total Victoria’s Secret revenue of $2.589 billion, down 0.1.% from $2.614 billion.
- Victoria’s Secret Direct revenue accounted for 20.3% of the business unit’s overall revenue, down from 21.7%.
- Bath & Body Works Direct revenue, which is largely online, of $197.8 million up 25.3% from $157.8 million.
- Total Bath & Body Works revenue of $1.620 billion, up 6.6% from $1.520 billion.
- Bath & Body Works Direct revenue accounted for 12.2% of the business unit’s overall revenue, up from 10.4%.
- Net income of $631.7 million, down 0.7% from $636.0 million.
For the full fiscal year, L Brands reported:
- Total revenue across its stores of $12.574 billion, up 3.5% from $12.154 billion a year earlier.
- Victoria’s Secret Direct revenue of $1.582 billion, up 1.4% from $1.560 billion.
- Total Victoria’s Secret revenue of $7.781 billion, up 1.4% from $7.672 billion.
- Victoria’s Secret Direct revenue accounted for 20.3% of the business unit’s overall revenue, unchanged from a year earlier.
- Bath & Body Works Direct revenue, which is largely online, of $452.2 million up 25.1% from $361.6 million.
- Total Bath & Body Works revenue of $3.852 billion, up 7.4% from $3.587 billion.