Amazon (AMZN) bra purchase transaction.
Victoria’s Secret (VSCO) suffered truly disastrous financial results last night, similar to what happened just hours earlier at fellow mall resident Foot Locker (Florida). This is the right move, as the intimate apparel company’s stock price has plunged nearly 30% premarket.
Management cited sales trends in February that had not improved from the 6% decline in the fourth quarter.
JPMorgan analyst Matt Voss (who downgraded VSCO today) added the following section to a research note to clients that caught my attention. VSCO appears to be losing more market share to Amazon, but the company is unlikely to win this battle. In my opinion, the problem is structural.
“It’s worth noting in the underwear industry data that management believes the sports bra category outperforms non-sports (i.e. structured bras), with sports bras outperforming non-sports (i.e. structured bras) by 30% overall in the broader underwear addressable market. 70% (compared to VSCO).So, in addition to sportswear companies such as Lululemon, management is also looking to expand its He pointed out that the overall underwear market in the fourth quarter declined by mid-single digits.In the sports bra category, (LULU) gained market share.
Despite VSCO/Florida’s terrible quarter, there are retailers within the mall that are winning.
Here’s what Abercrombie & Fitch (ANF) CEO Fran Horowitz told me on Wednesday after delivering yet another quarter of double-digit sales.