Sales at stores open at least a year decreased by 7 percent during Victoria's Secret's most recent quarter, according to L Brands.
L Brands CEO Stuart Burgdoefer said the company has been "more promotional than we would like over the last several years" in a call with analysts Thursday.
As a result of that decline, L Brands cut its quarterly dividend from 61 cents per share paid past year to just 30 cents. Victoria's Secret same-store sales have fallen for the past three years.
These aren't the only numbers falling for the lingerie company. "And we are intensely focused on improving results". Lingerie startups that offer cheaper bras through online sales are also becoming a hit. Burgdoerfer credited the strong performance in part to White Barn candles into some new and existing stores. The company closed 30 stores past year as it tried to escape weak malls. Adjusted to take account of the extra week, sales rose 3 per cent in the latest year.
L Brands' overall results for its fourth quarter, which includes the Christmas holiday period, were virtually flat as compared to one year earlier. This marked its 16th consecutive quarter of double-digit positive growth. Analysts had expected sales of $4.88 billion, Total sales at Victoria's Secret were $2.531 billion, down from $2.668 billion a year ago.
"The most important thing, in our view, is the merchandise", he said.
L Brands Inc., owner of the lingerie chain, announced Wednesday that Victoria's Secret's US brick and mortar square footage will decrease by about 3 percent.