Limited Gets a Lift from Victoria’s Secret Facebook Campaign This Holiday Season

December 20th, 2011 by Trefis Team
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Limited Brands’ (NYSE:LTD) holidays 2011 campaign is gaining handsomely from some smart Facebook promotions of its most well known brand Victoria’s Secret. In a recent survey, Victoria’s Secret has emerged as the 7th most liked brand on Facebook with a cool 16 million ‘likes’. [1] Victoria’s Secret Facebook page  is a big hit amongst the fans with around 250,675 ‘talking about this’ on Facebook. Limited Brands is a specialty apparel retailer focused on lingerie, beauty and personal care products competing with the likes of Abercrombie & Fitch (NYSE:ANF), American Eagle Outfitters (NYSE:AEO), Ann(NYSE:ANN), Gap (NYSE:GPS), and J.Crew Group (NYSE:JCG).

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Trefis price estimate for Limited Brands stands at $39.62, which is nearly 5% ahead of current market price.

See our full analysis of Limited Brands

Limited’s Holiday 2011 Campaign Gaining From High Popularity of Victoria’s Secret on Facebook:

With the scale of popularity Victoria’s Secret is enjoying on Facebook, we believe Limited’s holiday sales to benefit immensely from it. The company is actively promoting  holiday special deals on the Facebook page, which are getting terrific response from its Facebook fans. Additionally, Victoria’s Secret  is also giving fans the opportunity to send gift cards to friends through the page, thus encouraging its fans to purchase more of the company’s products. For instance talking in term of numbers, after the company began a daily offer to give away 100,000 gift cards, valued at $10, $50, $100, or $500, exclusive to its Facebook fans, Victoria’s Secret’s “people talking about this” skyrocketed to 380,000 from an earlier figure of 170,000 with a huge increase in engagement levels.

Limited Brands had reported a reported a 7% increase in its comps for November, gaining primarily from 11% increase in comp sales for Victoria’s Secret. Judging by the popularity of Victoria’s Secret on facebook, we expect the number to only increase going forward.

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Notes:
  1. CNBC declares Victoria’s secret as 7th most liked band on facebook, Source: CNBC [↩]