L Brands starts summer on a down note

Victoria's Secret is casting a shadow on parent company L Brands.



L Brands said that net sales fell 6% to $1.21 billion for the five weeks ending period ending July 2. Total same-store sales fell 9%, worse than expected, dragged down by a 17% decline at Victoria's Secret. On the positive side, same-store sales rose 8% at Bath & Body Works.



The retailer attributed 10% of the decline at Victoria’s Secret to its decision last year to exit swimwear and apparel in order to focus on its core undergarment offerings. It was the brand's sixth straight double-digit monthly comparable-sales decline, according to Retail Metrics.



Victoria's Secret is beset with a number of challenges, from declining mall traffic to increased competition from online players and traditional retailers, such as American Eagle Outfitters. Its Aerie brand, whose natural-looking models are a far cry from Victoria's Secret super-sexy "angels," has turned into a big hit with younger shoppers.