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. As the direct sales arm of Victoria's Secret Stores, it mails more than 390 million catalogs worldwide annually, offering bras and panties, sleepwear, clothing, shoes, swimwear, 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. In fiscal 2013 (ended January) sales increased 2%, to $1.59 billion, driven by increases in the Pink line, core lingerie, swimwear and sleepwear, and beauty products, partially offset by decreased sales of apparel. VSD's gross profit increased due to higher margins on higher sales. A reduction in buying and occupancy expenses, primarily due to lower catalog and fulfillment costs, also helped the bottom line.
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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