Why is the price on ladies under-clothes so high? It is not easy to find a decent, non-tacky undergarment unless you are willing to shell out big bucks for it.
The unofficial representative of the highly ridiculous styles and prices usually are the offerings from Victoria’s Secret, which is wholly owned by the famous L Brands (LB). It is known to go back and forth between dominatrix and matronly like a rebellious Amish teen on Rumspringa.
Stocks of L Brands on Thursday hit a low of 14 percent after the firm managed to beat the earnings estimates; however, it missed out on the revenue expectations.
This month, Victoria’s Secret is up for some serious competition with their comp-stores sales estimated to fall by 20 percent. Jim Cramer the founder of The Street, expressed it as Victoria’s Secret’s “dramatic guide down.” So, what could be the reason for their downfall? Maybe their ridiculously high price tag and the unwearable style had something to do with it.
“Like, what is this? The purpose of underwear is so you can actually wear it under clothes. Maybe adding women to their board who would be forced to wear the product would help, but who knows?” read a comment, referring to a picture of a model wearing lingerie.
Pink, a newer brand within Victoria’s Secret, carries much more adaptable loungewear and underwear as a younger, cohesive lifestyle brand. But again, women usually don’t want to buy their lingerie’s from the same brand they used to buy when they were in high school. They would like to think that they have managed to move from their younger self to a matured version now. It kind of creates an existential battle in them.
It is here when Gap (GPS) manages to outsmart the others. Their intimate collection is available at a decent price. The quality is on point and the store comes up with frequent sales with genuine discounts. On seeing their website, it is easily seen that the company is venturing deeper into loungewear and intimate collection. It was the perfect move made by the team, as it would channel all those customers who are turned off by V.S’ aesthetic style and price.
Madewell, the younger sister brand of the J. Crew, just made a royal entry into the lingerie sector with some super cool girl intimates priced at an affordable tag in the range of $30.
Abercrombie & Fitch (ANF) is leaving no stone unturned with the revival of its popular Gilly Hicks lingerie brand, which is attainable at Hollister. Not to mention that the loungewear on the A & F website also looks amazingly good with some pretty sale bralettes for just $12.
On the lesser expensive end, look who is joining the bandwagon? It’s none other than Amazon (AMZN). It will be entering the lingerie space with bras priced as cheap as $10. Now, this could cause serious damage to Target‘s (TGT) and Walmart‘s (WMT) demographic. However, this won’t affect V. S’ bottom line.
With a long list of mid-tier brands entering the lingerie and loungewear space offering the much-needed alternatives in the market, its high time Victoria’s Secret gets their act together.