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Tag: Bath & Body Works

  • Bath & Body Works to open third store in India

    Bath & Body Works to open third store in India

    Bath & Body Works, one of the world’s leading specialty retailers of fragrant products for the body, hands, and home for more than 20 years, is launching its third store at Ambience Mall, Gurugram on November 25. Earlier this year the brand launched in India with two stores in New Delhi at Select Citywalk and DLF Mall of India.

    In keeping with international formats, the Bath & Body Works stores in India showcase latest trends as well as the newest, freshest fragrances for body, hand, and home.

    From light-hearted and flirty scents to sophisticated and exotic fragrances, the Bath & Body Works store at Gurugram will be all about fun with world-class fragrances, with a special launch offers.

    Having established itself as one of the best and most sought after Personal Essentials and Home Fragrance brands, the Bath & Body Works store in Gurugram will be spread over approx. 1,200 sq.ft that will allow customers to enjoy an extensive array of fragrances: Body Crèmes, Shower Gels, Body Lotion, Bath Frizzies, Fragrances Mists, Hand Creams, Hand Washes, Hand Sanitizers, Candles and Gift Sets.

  • L Brands loss revealed, Victoria’s Secret faces challenge

    L Brands loss revealed, Victoria’s Secret faces challenge

    Lingerie brand Victoria’s Secret needs to reinvent itself, says retail analyst Neil Saunders, commenting in the wake of a US$42.8 million loss by its parent L Brands. “The brand is simply not connecting and resonating with consumers in the way that it once did. Its overt sexuality, its focus on airbrushed glamour, and its dark-and-moody stores are completely out of step with the mood of most modern consumers,” said Saunders, MD of GlobalData Retail.

    “However, this is not a new phenomenon, Victoria’s Secret has been out of kilter for a long period of time – and has seemingly done very little to bring itself back into line.”

    Sales at Victoria’s Secret have fallen in seven out of the last eight quarters, mainly due to its weak diffusion brand Pink, launched in 2002 and aimed at college-aged women.

    “In Pink, fashion errors in loungewear have driven a recent deceleration in performance,” the company admitted in its earnings statement.

    L Brands’ third-quarter results showed an increase in same-store sales of 4 per cent across the group, to $2.77 billion, but Victoria’s Secret store sales fell by 2 per cent.

    The top line was boosted by L Brands’ Bath & Body Works brand. But one-off costs from the closure of Henri Bendel, impairments at Victoria’s Secret and ongoing losses in the La Senza business drove the net loss.

    Saunders described the Victoria’s Secret performance as disappointing, “not only with the sales numbers but by the inertia within the business”.

    He said much of the brand’s failure to change came down to embedded attitudes within management.

    “The recent insensitive comments about transsexuals from chief marketing officer, Ed Razek, in a Vogue interview characterise the problems. Not only are such remarks bad for the brand’s image, but it also earned a sharp public rebuke from the CEO of more incisive rival ThirdLove which has been stealing share from Victoria’s Secret for some time.

    “In theory, the departure of Jan Singer as CEO should help herald in changes someone coming in will have fresh ideas about reviving the fortunes of Victoria’s Secret.”

    L Brands has appointed John Mehas from lifestyle brand Tory Burch as the new CEO of Victoria’s Secret. He will take up the role early next year.

    Pink CEO Denise Landman retired after the release of the L Brands half-year results and she was replaced on October 1 by former Bath & Body Works president for merchandising and product development, Amy Hauk.

    “Our new leaders are coming in with a fresh perspective and looking at everything … our marketing, brand positioning, internal talent, real estate portfolio and cost structure,” said CEO Leslie Wexner.

    Saunders said Bath & Body Works was a stark contrast to the core brand.

    “The company’s wholesome brand image and its focus on small indulgences are paying real dividends – especially in a consumer economy where shoppers have more money to treat themselves. Its strong range development which means assortments are constantly changing encourages regular visits to online and stores. It also means that the company is good at jumping on trends like aromatherapy-based scents and the ongoing popularity of candles. Second, good marketing and promotions help to drive volumes through the business,” said Saunders.

    “Both of these things stem from the fact that the BBW team is much more attuned to the market and consumer trends than is the case at Victoria’s Secret. Indeed, the cultures at the two divisions could not be more different, and we believe that Victoria’s Secret should take a leaf out of its sister brand’s playbook as it looks to reinvent itself.”

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  • Victoria’s Secret apologises for ‘insensitive’ transgender model comment

    Victoria’s Secret apologises for ‘insensitive’ transgender model comment

    Following the backlash on social media, the chief marketing officer of L Brands, parent company of Victoria’s Secret and Bath & Body Works, has posted an apology on Twitter for comments he made about transgender models. Ed Razek, L Brands’s CMO, released a statement on Twitter clarifying a comment he made in an interview with Vogue magazine, which read:

    “To be clear, we absolutely would cast a transgender model in our show. We’ve had transgender models come to castings… And like many others, they didn’t make it.”

    Razek and Monica Mitro, vice president of public relations for Victoria’s Secret, sat down in an interview with Vogue which touched on the topic on the casting team’s choices. Razek, who is part of the casting team, mentioned the company had considered putting plus-sized models and transgenders in the show but had not acted on it, since the company “did not market to the whole world.”

    L Brands has recently announced it is expecting a third quarter loss per share of about US$0.17.  The reported loss per share includes a total charge of about US$0.32 per share, which consists of an approximate pretax cash charge of US$20 million related to the closure of its Henri Bendel business, and an approximate pretax non-cash impairment charge of US$80 million related to certain Victoria’s Secret store assets.

    Excluding the charges mentioned, the company expects adjusted third quarter earnings per share to be approximately US$0.15, compared to its previous guidance of US$0.00 to US$0.05, principally driven by outperformance at Bath & Body Works.

    The company has recently reported an 8 per cent increase in sales of US$860.5 million for the four weeks ending November 3 and a 4 per cent increase in same-store sales for the period. It has seen a 6 per cent increase for the 13 weeks ending November 3 of US$2.78 billion compared to the previous corresponding period.

    L Brands, is scheduled to report third-quarter earnings on November 21.

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  • Bath & Body Works to open first store in India soon

    Bath & Body Works to open first store in India soon

    Major Brands, India’s leading retailer for premier international fashion apparel, accessories and beauty brands is all set to launch Bath & Body Works first store in Mumbai at Palladium soon. Having established itself as one of the best and most sought after personal essentials and home fragrance brand, the Palladium store will be spread over 900 sq.ft that will allow customers to explore an extensive array of fashion fragrances for the bath, body and home.

    From fun and flirty scents to sophisticated and exotic fragrances, Bath & Body Works offers a wide range of world-class fragrances to suit every personality and occasion. Hallmark collections of the brand, including the Signature fragrances and White Barn Home Fragrance will also be available at the store.

    Launched in 1990, the brand’s portfolio today comprises over 200 different fragrances including the iconic Sweet Pea, Japanese Cherry Blossom, A Thousand Wishes, Aromatherapy, Hello beautiful as well as new seasonal releases.

    Earlier this year, the brand opened two of its flagship stores in New Delhi at Select Citywalk and Mall of India.

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  • India aim to open 50 Bath & Body Works stores in 5 years

    India aim to open 50 Bath & Body Works stores in 5 years

    Major Brands India, a leading retailer for premier international fashion apparel, accessories and beauty brands, has added yet another exciting brand to its portfolio: Bath & Body Works – one of the world’s leading specialty retailers of fragrant products for the body, hands, and home.

    The first Bath & Body Works store opened in June in India in New Delhi at Select CityWalk, followed closely by its second store in DLF Mall of India, Noida.

    At the launch, Tony Garrison, Senior Vice President, Bath & Body Works International said, “Bath & Body Works is a 25-year-old brand. We opened our first store in the Boston and have grown up to 1,600 stores in the US. About seven years ago, we decided to go international, so we opened first store of Bath & Body Works in Canada and since then there has been no looking back. Today, we are present in 34 countries. Now, India is a next big step for us.”

    “Rising awareness of premium personal care products, growing disposable incomes, changes in consumption patterns and lifestyles, promise exciting times for Bath and Body Works in India,” added Renu Karumsi, Associate Vice President, Bath & Body Works International.

    The Bath & Body Works Select CityWalk store is spread across approx. 1,300 square feet while the Mall Of India store covers approx. 1,500 square feet area. Both locations present an exciting and new experiential environment that will allow customers to explore an extensive array of fashion fragrances for the bath, body and home.

    From fun and flirty scents to sophisticated and exotic fragrances, Bath & Body Works offers a wide range of world-class fragrances to suit every personality and occasion.

    Hallmark collections of the brand including the Signature Collection Body Care, Bath and Body Works and White Barn Home Fragrance, Bath and Body Works Hand Soap, Sanitizers and Aromatherapy, will be available at the store.

    According to Karumsi, “The Indian stores are 100 percent replica of our stores in global markets. What we do is that we launch with the consistent assortment and then as we learn more about the customer we fill the store accordingly. About 80 percent of our range stays the same globally and rest 20 percent keeps on changing based on preferences.”

    “We are very price competitive and we have 1,500 SKUs at Bath & Body Works,” added Tushar Ved, President Major Brands India.

    Launched in 1990, the brand’s portfolio today comprises over 200 different private label scents, including the iconic Sweet Pea and Japanese Cherry Blossom, award-winning A Thousand Wishes and soothing Eucalyptus Spearmint as well as seasonal new releases. At Bath & Body Works, customers are invited to sample luxurious lotions, hand soaps, fragrances and more to discover their favourites.

    “All our products are made in US and we have something for everybody,” said Garrison.

    Karumsi added, “We are eyeing mist and candles to be fastest moving categories.”

    Bath & Body Works, which has come to India with expansion plans of Rs 80 crore in the next two years, is looking forward to harness the reach of social media and influencer marketing in order to resonate with today’s millennials who consume news largely via digital platforms and are excited to share new discoveries.

    The brand’s immense portfolio and product categories will be presented in dynamic, new age digital formats, with engaging content to not only reach out to users familiar with the brand, but to also engage with and induce experimentation with newer audiences across demographics.

    “We have no immediate plans to go online in India. First we want to make connections with the consumers and once the customers experiences and understand the product then it will be easy to go online,” said Karumsi.

    Bath & Body Works will be opening its next two stores in Delhi – Ambience Mall Gurugram and Vasant Kunj and then will be heading to Mumbai.

    “Our strategy has been to own a market, understand how the model works and then enter the other regions,” revealed Garrison.

    After Mumbai, we also plan to open Bath & Body Works stores in the best malls of Bengaluru and Chennai. We are looking to open 50 Bath & Body Works stores in 5 years but we will follow a cluster strategy,” added Ved.

    Over the past few years, Major Brands has been instrumental in introducing blockbuster brands to the Indian market like Aldo, Aldo Accessories, Charles & Keith, Inglot, La Senza, Promod, Beverly Hills Polo Club, Call it Spring and New Balance.

    “Since 2001, Major Brands has continually introduced a selection of premium brands from across the world, giving Indian shoppers the best of high street in the country. With the launch of Bath & Body Works, the most awaited brand in India, we are sure our customers will love the experience of the line of bath and body products including home fragrances. We are excited to add yet another international category leader to our portfolio. The market size of India’s beauty, cosmetic and grooming market is expected to reach US $20 billion by 2025 from the current US $6.5 billion. A rising aspiration among Indians to look better, groomed to feel good has led to this market’s rapid growth of more than 42 percent in the last five years,” said Ved.

    In keeping with international formats, the Bath & Body Works stores in India will showcase latest trends as well as the newest, freshest fragrances for body, hand, and home, giving consumers exciting, luxurious, and indulgent new experiences.

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  • L Brands hit by sagging Victoria’s Secret sales

    L Brands hit by sagging Victoria’s Secret sales

    L Brands, which owns the Victoria’s Secret, Pink and Bath & Body Works brands, has reported positive comparable and net sales for December.

    However, Victoria’s Secret sales failed to pick up during the holiday season.

    Net sales reached US$2.5 billion for the five weeks ended December 30, up 3 per cent compared to the same period the previous year, while comparable sales increased 1 per cent.

    Bath & body Works sales rose 4 per cent while Victoria’s Secret comparable sales declined 1 per cent. Minus the effect of online sales, Victoria’s Secret comparable-store sales fell 6 per cent.

    This follows Victoria’s Secret brand quitting the swim and apparel categories.

    For the 48 weeks to the end of December, the company reported net sales of $11.5 billion, down from $11.7 billion. Comparable sales dropped 4 per cent.

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  • Slow growth for Victoria’s Secret parent

    Slow growth for Victoria’s Secret parent

    Victoria’s Secret parent L-Brands has kicked off its new fiscal year with a reasonable set of numbers.

    However there is a distinct softness to the total growth rate which is significantly down on the last quarter even against a fairly reasonable prior year comparative. Same store sales growth has also halved since the end of the last fiscal year.

    More worrying is net income, which fell by 39 per cent over the prior year. Although the bulk of this decline is related to the one-off gain from last year when the company sold its interest in a third-party apparel sourcing business, a decline in operating income also contributed to the fall. In essence, cost growth outstripped sales growth during the first quarter.

    The reason for the softness is mostly down to a weaker, though still positive, performance at Victoria’s Secret. Here comparable sales increased by just 2 per cent – an uncharacteristically slow pace, and one significantly down on the 5 per cent attained last quarter. Despite the net addition of a handful of new stores over the past year, total growth from shops was virtually flat, with a comparatively subdued rise of 1 per cent in same store sales. Performance at the direct part of the operation was only somewhat better with a  2 per cent uplift in sales.

    There are a few reasons for the downtick in growth at Victoria’s Secret. The first was an aggressively promotional market, against which despite its usually loyal customers Victoria’s Secret had to work hard to compete. The second was a somewhat less interesting product assortment which, while still reasonable, did not have hits like last year’s Bombshell bra. And the third was a weaker performance from non-core categories like swimwear, which the company has indicated it will cease selling by the year end. Combined, these things helped to erode growth.

    As genuine as these excuses are, there is also a question mark over whether the brand is reaching saturation point, especially within a market that has become more competitive with nimble players like American Eagle Outfitters’ Aerie. Victoria’s Secret still has headroom for growth, but there is no doubt that it is now having to work a lot harder to secure it. Key to achieving better numbers will be a very disciplined approach to categories outside of lingerie – an area where the company has struggled with both apparel and more recently swimwear. By getting rid of these failing areas, a focus on the more logically adjacent activewear category holds better potential.

    Performance at L-Brands’ other main division, Bath & Body Works, was robust with comparable sales up by 6 per cent. Bath & Body Works success is down to a consistently strong product offering, good gifting ideas which boosted performance over Easter, accessible price points, and friendly store environments with good service levels. All of these ‘ticked boxes’ helped the company to do well, in a competitive environment.

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