Victoria's Secret is the latest retailer to succumb to store closures as it faced a tough holiday season for sales. The retailer said it will be closing 53 of its underperforming stores in North America at the direction of its parent company L Brands Inc.
The lingerie company said it will shutter the locations this year, reducing its North American footprint by 3 percent. L Brands Inc., however, will continue to grow its Bath & Body Works brand that has remained successful despite a move towards online purchases for consumers.
"Given the decline in performance at Victoria's Secret, we have substantially pulled back on capital investment in that business versus our history,'' the company said in a statement.
With holiday sales down, L Brands saw sales lag 3 percent with a 7 percent decline of in-store sales. The once popular PINK brand saw sales reduce to lower than normal double digits for the fourth quarter while Victoria's Secret lingerie line remained flat even during the heavy gifting season.
Victoria's Secret has been struggling in the market as customer demands have shifted and a move toward female empowerment and diversity has taken over, Bloomberg reported.
Shares of L Brands Inc. stock were down 4.20 percent as of 3:51 p.m. EST on Thursday.
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