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Tag: lingerie

  • L Brands appoints new Victoria’s Secret CEO

    L Brands appoints new Victoria’s Secret CEO

    Martin Waters, who currently leads the troubled brand’s lingerie division, has been promoted to CEO of business as a whole. He will take over from L Brand CFO Stuart Burgdoerfer who has served as interim chief executive at Victoria’s Secret for the past nine months.

    Burgdoerfer will retire this summer, the retailer announced Thursday, February 4. Waters, who joined the company in 2008 as head of the international division, will assume his new role effective immediately.

    L Brands said it expects the separation of Victoria’s Secret from Bath & Body Works to be completed in August. “All options, including a spin-off of the Victoria’s Secret business into a public company or a private sale of the business, are being evaluated,” L Brands said in a statement.

    L Brands had agreed to sell Victoria’s Secret to private equity firm Sycamore Partners in early 2020, but the deal fell through in the wake of the pandemic. With Sycamore out of the picture, the company said last May that it would still go forward with plans to separate its two entities and establish Bath & Body Works as a stand-alone public company.

    As part of the announcement Thursday, L Brands also raised its fourth-quarter earnings guidance and forecasted a comparable sales increase of 10 percent — a 22 percent increase at Bath & Body Works and a 3 percent decrease at Victoria’s Secret.

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  • 6ixty8ight expands online into two more SEA countries

    6ixty8ight expands online into two more SEA countries

    Lingerie chain 6ixty8ight is expanding its e-commerce network into Thailand and the Philippines, less than two months after it launched in Japan.

    “With an increasing proportion of customers who prefer to shop online, 6ixty8ight puts e-commerce business as the top business priority,” the company said in a statement.

    The Hong Kong-headquartered brand said it uses online stores as a means to start building brand awareness in new markets before progressing into physical stores. In two months, 6ixty8ight has opened a presence in three new markets in Asia.

    The 6ixty8ight online stores in Thailand and the Philippines will feature a full range of lingerie, homeware, casualwear, and accessories. The brand will also introduce its new collections, including Modern Lace Collection and Summer Styles.

    Founded in 2002, 6ixty8ight operates more than 200 stores across Greater China, South Korea, Singapore, and Malaysia.

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  • Next likely to become Victoria’s Secret UK partner

    Next likely to become Victoria’s Secret UK partner

    British multinational clothing retailer Next has been selected as the intended UK franchise partner for Victoria’s Secret by the brand’s administrators.

    A Next partnership would give Victoria’s Secret UK access to a sophisticated digital and delivery capacity and the chance to partner with Next’s property team to bolster expansion within the territory.

    The deal is currently awaiting confirmation pending the brand’s store landlords agreeing to key lease restructures, taking into account the impact of the coronavirus pandemic on sales. The firm has, however, secured an exclusivity agreement to take the brand that is guaranteed until the end of September. Some of the brand’s 25 stores in the UK could be permanently shuttered.

    Next currently holds apparel brands Abercrombie & Fitch, Boss and Under Armour within its portfolio. According to media reports in the UK, Next pipped department-store chain M&S to become the preferred franchise partner.

    Victoria’s Secret UK collapsed into administration last month. The US parent L Brands has launched a strategic review of the brand’s presence in China, which has already resulted in the closure of the Hong Kong flagship store. In the US, L Brands plans to close about 250 stores to right-size the business.

    Victoria’s Secret made operating losses of US$214 million in the year to 20 February.

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  • Victoria’s Secret Hong Kong flagship store abruptly shut down

    Victoria’s Secret Hong Kong flagship store abruptly shut down

    The high-profile Victoria’s Secret Hong Kong flagship store has been closed suddenly. According to multiple reports, employees were all laid off last night (June 24) on the even of Hong Kong’s public holiday.

    Signs were placed on the store’s entrance announcing the closure and telling customers they could continue to shop online. People visiting the store today could see stock being boxed in the store.

    Operated by Victoria’s Secret’s US parent Limited Brands, the store’s future was questioned by Inside Retail on several occasions, most recently last month as part of a strategic review of the company’s Chinese operations.

    The Victoria’s Secret Hong Kong store opened two years ago after another struggling US retailer Forever 21 quit the site. The lingerie brand’s four-story flagship featured a whole level for its Pink brand, and a floor dedicated to high-end products, complete with the city’s most luxurious fitting rooms.

    Sources said that Limited Brands was paying US$903,000 a month for the 50,000sqft space, which is about half the rent Forever 21 reportedly paid previously. In return, they signed a 10-year lease in 2017 which runs until August 2027. It took nearly a year to fit the store out.

    It is not clear what deal – if any – Limited Brands has agreed to in order to exit the space, however, a senior real estate industry source said last month he doubted the then rumors that the store would close because of the length of the lease.

    “They have a long lease and can’t just walk away. I would be surprised if the landlord takes backspace voluntarily.”

    Our source said the site would be difficult space to fill as it is so large and needs significant capital expenditure to convert into multiple retail spaces or refurbish to suit another brand.

    “If the landlord did take it back, it would need to be sub-divided as it was before with multiple tenants.”

    Another source told a Hong Kong publication that Limited Brands would face a $77 million bill for terminating the contract early – equivalent to nearly 90 months rent.

    In May, Limited Brands reported a 37-per-cent slump in first-quarter sales to $1.65 billion, with revenue from Victoria’s Secret down 45.6 percent, in part due to store closures relating to Covid-19.

    Subsequent to that, a company executive told an analysts’ briefing that it was “evaluating strategic alternatives to reduce or eliminate losses in the UK and China”. The Victoria’s Secret UK business subsequently collapsed early this month.

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  • 6ixty8ight makes Japanese debut with online launch

    6ixty8ight makes Japanese debut with online launch

    Hong Kong lingerie brand 6ixty8ight marks its Japanese debut tomorrow by launching an e-commerce store.

    The 6ixty8ight Japan online store will be used to build brand awareness in the market before the first physical stores open later this year.

    “The brand’s expansion strategy has been highly focused on e-commerce since the last quarter of 2019, which also became the top business priority as a result of multiple markets being locked down due to Covid-19 epidemic since the beginning of 2020,” the company said in a statement.

    The online store will feature a full range of lingerie, homeware, casualwear and accessories. The brand will also introduce its new collections on the Japan online store including Tropical Lace Collection and Everyday Dresses.

    Founded in 2002, 6ixty8ight operates more than 200 stores across Greater China, South Korea, Singapore and Malaysia.

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  • Victoria’s Secret UK collapses into admin work

    Victoria’s Secret UK collapses into admin work

    The Victoria’s Secret UK business has been placed in administration – and it is not just a victim of the Covid-19 crisis, says one analyst.

    Echoing concerns expressed in the brand’s US home market, Sofie Willmott, lead retail analyst at GlobalData, said Victoria’s Secret has lost its appeal to its target demographic.

    “Despite being a desirable, yet expensive, underwear brand when it launched in the UK in 2012, Victoria’s Secret has since lost its appeal for many shoppers due to a lack of inclusivity. Its famous catwalk show was canceled last year after much debate but for many of its target customer base, it was too little too late and they had already gone elsewhere.”

    The Victoria’s Secret UK business has 25 stores, now all at risk of closure. A staff of 785 employees have been furloughed during the process.

    “This is yet another blow to the UK high street and a further example of the impact the Covid-19 pandemic is having on the entire retail industry,” said Deloitte joint administrator Rob Harding in a statement.

    “The effect of the lockdowns, combined with broader challenges facing bricks and mortar retailers, has resulted in a funding requirement for this business, resulting in today’s administration.

    “We will now work with the existing management team and broader stakeholders to assess all options available for the future of the business.”

    In the US, L Brands, parent of Victoria’s Secret, plans to close about 250 stores to right-size the business. A large question mark hangs over its flagship stores internationally, including in Asia and a strategic review has been launched into the brand’s presence in China.

    Willmott said the administration is yet another blow to retail landlords as clothing & footwear spend continues to shift online. The company’s UK e-commerce business is unaffected by the process, with the brand to continue selling online only with lower overheads, “piggybacking on its US operations”.

    “With Victoria’s Secret stores primarily in flagship shopping-center locations including Bluewater, Westfield Stratford and Birmingham Bullring, the administration brings more bad news for landlords that are struggling to collect rent payments.”

    The administrators of Victoria’s Secret UK are seeking a buyer, however, given the state of the brand’s perception in the marketplace, its troubled prospects globally and the crisis the broader UK retail industry finds itself in post-Covid-19, it is difficult to perceive a quick white-knight rescue.

  • Chian Strategic review launched of Victoria’s Secret future

    Chian Strategic review launched of Victoria’s Secret future

    The future of the Victoria’s Secret China business is under review as the lingerie retailer moves to permanently close 250 more US stores in a bid to right size and restore profits.

    Parent L Brands revealed a 37-per-cent slump in first-quarter sales to US$1.65 billion, with revenue from Victoria’s secret down 45.6 percent, in part due to store closures. However sales at its Bath & Body Works business fell by a more modest 18.1 percent, largely due to increased sales of sanitizer and soaps during the Covid-19 lockdown and strong online performance.

    Subsequent to releasing the results, the company said in an analysts’ briefing that it was “evaluating strategic alternatives to reduce or eliminate losses in the UK and China”.

    No further comment was made with regard to the Victoria’s Secret China business, however, there were indications last year that Victoria’s Secret may phase out its large-format flagship stores. By nature the generally loss-making flagships like the four-story one in Hong Kong’s Causeway Bay exist to market the brand name, driving broader regional sales.

    L Brands’ overall first-quarter sales slump is largely in line with the performance of other US-base chains, who suffered from stores being closed during the Covid-19 pandemic. While online sales rose at the peak of the lockdowns, it was by no means enough to replace physical sales. However the figures for Bath & Body Works covered up the dismal performance of Victoria’s Secret.

    L Brands reported a $317.7 million operating loss for the quarter and an adjusted net loss of $296.9 million.

    Neil Saunders, MD at GlobalData Retail, said Victoria’s Secret has been a brand in decline for many years.

    “It went into this crisis in a weakened state and will emerge even more enfeebled. The sale of a large stake to Sycamore provided a potential route out of the ongoing funk in that it would inject some new management and thinking, but now that deal is off the future looks much more uncertain.”

    Saunders said the performance of Bath & Body Works was a strong result reflecting the brand’s popularity and its loyal customer base.

    “Before the crisis, sales in stores were up 20 percent on a comparable basis – a function of strong traffic and some excellent growth in home fragrance. When stores were closed, consumers turned to the online channel to get products, helping push direct sales up by 85 percent over the quarter.”

    Saunders said there is a question mark over the future of Victoria’s Secret in general. “The company is sizable in sales terms, but it lacks any real sense of direction or positive momentum. That needs to be quickly corrected if L Brands wants to attract new partners and investors and, indeed, if the brand is to have a sustainable future.”

    Meanwhile, Credit Suisse analyst Michael Binetti, was skeptical of the company’s ability to turn Victoria’s Secret around or prepare it for spinning off. He told Retail Dive that cost management plans – including store closures – put forward by management to analysts did not include enough evidence to reassure investors of Limited Brands’ ability or timing to effect a separation of Victoria’s Secret.

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  • Victoria’s Secret sale cancelled due to spin off activity

    Victoria’s Secret sale cancelled due to spin off activity

    The ongoing saga of Victoria’s Secret’s survival took another significant turn overnight as parent L Brands confirmed the deal with private-equity company Sycamore Partners was canceled and it now plans to spin the business off.

    The two companies have announced a “mutual termination” of the deal – itself a twist after L Brands last month commenced legal action to force Sycamore to honor the sale.

    Sycamore had agreed to pay US$525 million for a 55 percent stake in L Brands back in February, a deal most analysts at the time considered a bargain. But the subsequent advent of the coronavirus pandemic which saw most of the company’s stores shuttered, decimating sales, has made L Brands less desirable, even at that price.

    Last month, Sycamore declared the purchase agreement was invalid, claiming that by closing stores during the Covid-19 pandemic, laying off staff and withholding rent, L Brands was in breach of the sale agreement under which the retailer was obliged to continue to conduct business ‘as usual’ ahead of settlement. L Brands disagreed.

    In a press statement confirming the mutual termination, Sycamore said neither company would be required to pay the other a termination fee or any other consideration in both canceling the deal and settling the litigation.

    L Brands’ board decided a protracted court battle worth neither the effort nor the expense.

    Furthermore, with L Brands to retain a 45-per-cent stake in the Victoria’s Secret business under the agreement, the two companies would have made uneasy bedfellows after a lengthy court fight with each other.

    L Brands says its new plan is to spin off Victoria’s Secret, but the details on how and when are far from clear. According to a statement overnight, L Brands will focus on building the profitable Bath & Body Works business as a pure-play public company, separating the Victoria’s Secret lingerie, beauty and Pink entity into a standalone company.

    It is hard to see this being done through an IPO given the underwhelming financial performance of the business and its tired retail format, let alone in an economic climate where there is little appetite for new investments.

    “Like all retailers, the company faces an extremely challenging business environment,” said Sarah Nash, who will next week assume chairmanship of the company.

    “We are implementing significant cost reduction actions and performance improvements at Victoria’s Secret while continuing to drive strong growth at Bath & Body Works. We will continue to make decisions and take actions with the best interests of all our stakeholders and the future of our company in mind.”

    Most of the changes which were planned after Sycamore’s investment will still proceed. At next week’s virtual board meeting Leslie Wexner will step down as CEO and chairman, but will remain a member of the board as ‘chairman emeritus’. Andrew Meslow, CEO of Bath & Body Works, will become CEO of L Brands and join the board. In addition, Stuart Burgdoerfer, currently CFO, will immediately assume the role of interim CEO of Victoria’s Secret while continuing to serve as CFO.

    Nash says L Brands will provide further details of its plans for restructuring during a scheduled earnings call on May 21.

    L Brands operates 2920 company-owned specialty stores in the US, Canada, Greater China and the UK as well as selling through more than 700 franchised locations worldwide.

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  • Victoria’s Secret deal may be off as L Brands

    Victoria’s Secret deal may be off as L Brands

    Sycamore Partners’ rescue plan for troubled lingerie retailer L Brands is all but off with the two companies headed to court after the private-equity company unilaterally canceled the bid.

    Sycamore agreed to pay US$525 million for a 55 percent stake in L Brands, the parent of Victoria’s Secret, back in February in a deal most analysts at the time considered a bargain. But the subsequent advent of the coronavirus pandemic which saw most of the company’s stores shuttered, decimating sales, has made L Brands even less desirable, even at that price.

    On Wednesday, Sycamore notified L Brands it was terminating the deal, a move the target company described as “invalid”.

    Sycamore is claiming that by closing stores, laying off staff and withholding rent, L Brands was in breach of the sale agreement under which the retailer was obliged to continue to conduct business ‘as usual’ ahead of settlement.

    In a statement, L Brands said it would “vigorously defend the lawsuit and pursue all legal remedies to enforce its contractual rights, including the right of specific performance”.

    L Brands’ share price took a 20-per-cent hit in the wake of Sycamore’s actions.

  • Hop Lun signs licensing deal with Janet Reger Lingerie

    Hop Lun signs licensing deal with Janet Reger Lingerie

    British lingerie brand Janet Reger has signed a new global licensing deal with Hong Kong’s Hop Lun, one of the world’s largest lingerie and swimwear designers and producers.

    A newly launched diffusion line ‘Janet Reger Rouge’ is the first move by the 50-year-old brand Janet Reger to democratize its lingerie offer on a global scale.

    Founded in the 1960s by Janet Reger, who died in 2005, the brand is now run by her daughter Aliza who continues to uphold the label’s mantra of “Confident Beauty Undressed”.

    “Hop Lun’s expertise and manufacturing capabilities paired with the Reger heritage make the perfect partnership,” said Aliza Reger.

    Described as ‘age agnostic’, ‘Janet Reger Rouge’ covers four design stories and spans 36 pieces, all aimed at the contemporary woman.

    Erik Ryd, Hop Lun’s founder and CEO said it is amazing to think that more than 50 years ago Janet Reger was the first lingerie brand that really celebrated being a woman.

    “This ethos still exists today and we are excited about both the collaboration and the opportunity to bring the Janet Reger Rouge brand to new, global markets”.

    Hop Lun, founded in 1992, provides fashion lingerie and swimwear to major global brands and retailers. The company also founded its own retail brand 6ixty8ight.

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  • 6ixty8ight joins Shopee and SSG platforms

    6ixty8ight joins Shopee and SSG platforms

    International fashion lingerie and apparel label 6ixty8ight has made its debut on Shopee and SGG.com.

    The move follows the brand’s expansion into e-commerce following the launch of its own online sales platform in November last year and the establishment of a flagship on Lazada last month. 6ixty8ight’s online outreach now serves regional buyers from Singapore, Malaysia, Indonesia and South Korea.

    The firm operates more than 200 physical outlets across the region, located in Greater China, South Korea, Singapore and Malaysia.

    Meanwhile, 6ixty8ight launched its first outlet in Mongolia last month, located in Hohhot.

    6ixty8ight was founded in 2002 by Erik Ryd, a Swedish entrepreneur with an established lingerie-manufacturing business in Asia, who saw a gap in the market for a “youthful and energetic lingerie brand”.

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  • Indian online lingerie retailer Zivame to launch network of physical stores

    Indian online lingerie retailer Zivame to launch network of physical stores

    Online lingerie retailer Zivame will launch 60 physical stores in major Indian cities within the next 12–18 months.

    The firm has been gradually controlling its losses over the past financial year and is set to achieve break-even by the end of next year.

    “Last one year has been phenomenal as we have strengthened our position across categories and deepened our presence in the markets,” said Zivame’s CEO Amisha Jain to PTI News. “With tech, data and innovation at the heart of everything we do, we are set up for exponential growth over the next few years.

    “We have more than 40 retail stores in tier-1 markets and we are looking at taking that number to 100 over the next 12-18 months. We will deepen our presence in these markets.”

    Zivame hit a US$47.48 million annual run rate for financial year 2020. The app contribution for the brand’s gross sales increased from 50 per cent in the last financial year to 65 per cent this year. Online channel accounts take up about 80 per cent of Zivame’s business.

    Zivame, counts Zodius Capital, Unilazer Ventures and Khazanah Nasional Bhd among its investors, and may seek additional financing of about $50 million this year.

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  • Victoria’s Secret’s canceled annual fashion show

    Victoria’s Secret’s canceled annual fashion show

    Victoria’s Secret’s annual fashion show, where supermodels once walked down the runway wearing giant “angel” wings and elaborate lingerie sets, will not occur this holiday season.

    Stuart Burgdoerfer, CFO of the brand’s parent company L Brands, said on a call with investors on Thursday that Victoria’s Secret would be communicating with customers through social media and other platforms, but that it wouldn’t be “similar in magnitude to the fashion show”, which had been broadcast on network television in the US since 2001.

    “We think it’s important to evolve the marketing of Victoria’s Secret,” Burgdoerfer said.

    The news ends several months of speculation about the future of the fashion show after Victoria’s Secret said in May that show would not be part of network television this year, leaving open the possibility that it would be live-streamed online instead.

    But the show has been drawing a smaller audience for some time, as the brand’s “sexy” image has fallen out of favor with younger consumers and fashion trends have shifted towards bralettes and other less-padded styles.

    The fashion show was watched by 3.3 million Americans in 2018, compared with 12 million in 2001 when it was the first broadcast.

    The company also suffered a backlash last year when then-CMO Ed Razek told Vogue that the show wouldn’t have transgender models.

    L Brands posted a US$151.2 million operating loss in Q3 2019 on Thursday, which includes a US$284.7 million non-cash impairment charge related to Victoria’s Secret store and other assets, and a US$37.2 million charge to increase reserves related to ongoing guarantees for the La Senza business, which it sold in Q4 2018.

    Excluding these charges, its adjusted Q3 operating income was US$96.3 million and its adjusted net income was US$5.7 million.

    The retailer reported net sales of US$2.7 billion for the 13 weeks ended November 2, 2019, compared to US$2.8 billion for the prior corresponding period. Comparable sales were down 2 per cent in Q3 2019.

    The company is expecting a strong Q4, according to Reuters, and said its full-year adjusted earnings per share would be US$2.40, in line with its full-year guidance of between US$2.30 and US$2.60.

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  • 6ixty8ight in Hong Kong opens new store at East Point City

    6ixty8ight in Hong Kong opens new store at East Point City

    6ixty8ight in Hong Kong has opened its 28th store, at East Point City.

    With its home base in Hong Kong, the now-international lingerie and casualwear label is continuing to expand its brick-and-mortar network.

    Having become one of the fastest-growing fashion brands in Asia since its launch in 2002, 6ixty8ight’s offering covers recent trends in lingerie, homeware, loungewear, casual wear and accessories.

    6ixty8ight now has more than 200 stores across Greater China, South Korea, Singapore and Malaysia.

    The company says it aims to create a seamless retail experience on its online platform and through its brick-and-mortar network.

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  • La Vie en Rose Swimwear launching in China

    La Vie en Rose Swimwear launching in China

    Canadian specialty lingerie and swimwear label La Vie en Rose is expanding its business into Mainland China as part of a strategy to become twice as large and profitable within the next three years.

    The brand will launch in Guangzhou’s PO Park shopping mall later this month with further locations in Guangzhou to follow.

    “We were ready to accept the challenge of taking our first steps in China,” said La Vie en Rose president and CEO Francois Roberge. “We are looking at our first two years in the country as a real learning period. It’s very important to understand how the market works in order to build a foundation for our expansion.”

    The brand operates more than 360 stores, including 95 international locations in more than 15 countries, targeting women between 25 and 45.

    “Over the next two years, we plan on opening several physical locations in Guangzhou and continuing our expansion in China from there,” said La Vie en Rose VP of strategy and development Aurélie Daoust-Lalande.

    “We have the ambitious goal of doubling the size and profitability of the company by 2022, and our expansion outside of Canada will definitely play a major role in achieving this objective.”

    The firm’s products are also to be launched online on the Tmall online retail platform.