The company will begin by closing about 250 stores this year. But execs say there will likely be more next year and beyond.
The retailer is moving ahead with its plans to spin off Victoria’s Secret into a private company, anticipating the separation from Bath & Body Works will be complete by the end of the current quarter.
But he added, “We would expect to have a meaningful number of additional store closures beyond the 250 that we’re pursuing this year. Meaning, there will be more in 2021 and probably a bit more in 2022. Obviously, our ability to forecast that — we’ve got a point of view today — but that’s dynamic.”Inside a Victoria’s Secret store, pre-pandemic. Shutterstock / monticello
“What we see is a somewhat smaller, but substantially more profitable business with a much better foundation and then obviously, a return to growth, which is what all of us are looking for, for our associates, for our customers, for shareholders,” Burgdoerfer said. “We see a pathway for a business that’s, say in the neighborhood of a $6 billion-ish business, or a $5.
Then, in February, the company said it was selling a majority stake in the Victoria’s Secret business to private equity firm Sycamore Partners for $525 million. But the deal was scrapped in May. Even so, L Brands decided to move forward on its plans to split into two.
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