Canada Goose cuts 125 staff, L Brands closing some Victoria's Secret stores

05/23/2020 03:00 | NaN

Canada Goose cuts 125 staff, L Brands closing some Victoria's Secret stores

And even as some states move to reopen, many Americans are hesitant to go back into brick-and-mortar establishments.

There are now 1,635 stores in the U.S.

The owner of Victoria's Secret will close about 250 stores in the US and Canada in the coming year, according to USA Today.

L Brands (LB), the parent company of Victoria's Secret and Bath & Body Works, is planning on permanently closing hundreds of retail stores under the two brands.

Victoria's Secret is slimming down - and Wall Street likes the new look. Nearly all of the company's stores have been closed since March 17 due to the coronavirus pandemic.

More store closures could happen in the coming years, Victoria's Secret interim Chief Executive Officer Stuart Burgdoerfer said on a call with analysts on Thursday.

Bath & Body Works, another L Brands retail chain, announced a 20 percent increase in sales, as consumers raced to by soap and sanitizer amid the pandemic. L Brands previously had an agreement with private equity firm Sycamore Partners to take the retailer private, but the firm made a decision to pull out of the agreement in early May citing temporary store closures sparked by the coronavirus pandemic. "Some of those may be that a company is carrying too much debt, that they're too reliant perhaps on physical stores, or in some cases, it's just brands that have had trouble sort of finding their positioning for years". Its online sales grew 85% over a year ago. Both L Brands and Sycamore Partners called off the deal in May.

L Brands reported their total company sales declined 37 per cent in the first quarter ending May 2.

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