Victoria’s Secret abandoned swimwear last month, in a move that sent consumers reeling. Wasn’t that a huge part of the company’s business?
It was actually sinking. Although BuzzFeed reported that last year the company said its swimwear sales totaled $ 500 million, it noted they were down at the end of the summer in August.
Analyst and founder of consulting fi rmA Line Partners Gabriella Santaniello told Business Insider in April why nixing swimwear was a smart move — it would give the brand time to focus on its core businesses, namely, lingerie. The brand had stated it would divide the company into three businesses: lingerie, beauty, and PINK.
But amid this departure, there are other companies that appear to be filling the void, and that could potentially swoop up part that market. Now that one of the biggest players in the space will be eradicated by the end of the year, many of these brands could find huge opportunities for growth.
Aerie is slated for massive growth. In fiscal 2015, comparable sales soared 20%, and for the first quarter of fiscal 2016, comparable sales skyrocketed and impressive 32%. RBC Capital Markets wrote in a note that parent company American Eagle anticipates Aerie sales will reach $ 500 million in the coming years. That’s still small compared to Victoria’s Secret’s $ 6.1 billion store sales (and $ 7.7 billion including ecommerce), but the company is undoubtedly on the rise and gaining traction.
Swimsuits For All
Victoria’s Secret actually came under fire last year, when one of its bikinis looked shockingly similar to Triangl’s iconic bikini. Now could be an opportune time for the brand to salvage a larger share of the market.
Kendall and Kylie Jenner
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