What Are Some Of L Brands’ International Plans?

L Brands has geared up for some major developments in the international front. Among a few of its worries so far were: macroeconomic setbacks in some geographies, weak international exchange rates, and reduced tourism in high profile cities that dampened sales through travel retail. Hence, it has decided to build a local business for Victoria’s Secret in China, which will help deal with issues related to international transactions. Additionally, by transferring international direct sales responsibilities outside North America, the North American management can better focus on the core domestic business.

• After gauging the huge scale of the market, Victoria’s Secret acquired its existing Greater China franchisee business in April 2016. Presently, there are 26 Victoria’s Secret Beauty & Accessories (VSBA) stores in China.
• The company will transform its China business from a franchisee operating model to a wholly owned model.
• It has invested $4 million in the China business in Q1, is currently establishing an L Brands management team in Shanghai, and aims to initially open flagship stores in Beijing and Shanghai.
• Also, the international direct sales will be transferred from the North American business into the International business segment.
• 18 new stores were opened internationally in Q1 FY16 and there was a double digit growth in sales on a constant currency basis.

Have more questions on L Brands? See the links below.

• What Is L Brands’ Revenue And EBITDA Breakdown?
• How Has L Brands’ Revenue And EBITDA Composition Changed Over 2012-2016E?
• L Brands Q4 2015 Pre-Earnings Report
• L Brands 2015 Year In Review
• How Was L Brand’s Monthly Performance In February 2016?
• How Was L Brand’s Monthly Performance In March 2016?
• What Is L Brands’ Fundamental Value Based On 2016 Estimated Numbers?
• How Did L Brands’ Different Segments Perform Over The Last 5 Years?
• What Are The Key Takeaways From L Brands Q1 FY2016 Earnings Results?

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