Too busy or shy to shop in person for ladies' unmentionables? Victoria's Secret Direct affords shoppers the luxury, privacy, and convenience of ordering from home or on the go with a mobile device. As the direct sales arm of Victoria's Secret Stores, it mails more than 390 million catalogs worldwide annually, offering bras and panties, sleepwear, swimwear, fragrances, and beauty products, and a look at some of the world's top models. It also operates the website -- VictoriasSecret.com -- for its bricks-and-mortar sister chain. Both Victoria's Secret Direct (VSD) and Victoria's Secret Stores are owned by L Brands.
For the most part, VSD's sales have grown along with the increasing popularity of online shopping. However, in fiscal 2014 (ended January) sales declined by 5%, to $1.5 billion from nearly $1.6 billion. The company blamed the decline on a decrease in apparel sales (the company is abandoning the category), partially offset by increases in sport, PINK, core lingerie, sleepwear, and beauty.
VSD's gross profit also fell in fiscal 2014 versus the prior year due to lower merchandise margin dollars as a result of increased promotional activity, and the decline in sales.
Victoria's secret is exiting the clothing and accessories business -- due to sluggish sales -- to focus on lingerie, swimwear, and fragrances.
To grow its online business, VSD is looking toward two underpenetrated categories: PINK (a brand of intimate apparel targeting the college set launched in 2004), and beauty. To boost sales of its PINK-brand products VSD launched VSPink.com.
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