L Brands, renowned US fashion retailer, has witnessed its share price dip by 8 per cent. The brand has been struggling with the sales of its flagship lingerie network too with same-store sales slumping by 8 per cent in January 2019, thereby contributing to 1 per cent fall in overall sales.
Owing to such disappointing results, L Brands said that it would be shutting down as many as 53 stores in North America. In January, the brand had reintroduced swimwear (after many years) to increase footfall in its stores.
Notably, the net sales for the year ending 2 February 2019 were US $ 13.2 billion compared to US $ 12.6 billion for the year ending 3 February 2018 – a sales increase of 3 per cent.
However, it is important to note that excluding relevant one-off items, the brand’s adjusted net income was US $ 786.7 million compared to US $ 919.5 million for the 53-week period in the previous year.
Owing to the slump, the brand slashed its quarterly dividend to mere 30 cents from 61 cents per share paid last year.
