07.02.08
Columbus, OH
614.415.7000
www.limited.com
Sales: $3 billion
Sales:
$3 billion (estimated) for Bath & Body Works, White Barn and Victoria’s Secret personal care products. Corporate sales: $10.1 billion. Net income: $718 million for the year ended Feb. 2, 2008.Key Personnel:
Leslie H. Wexner, chairman and chief executive officer; Martyn R. Redgrave, executive vice president and chief administrative officer; Stuart B. Burgdoerfer, chief financial officer; Sharen J. Turney, chief executive officer and president, Victoria’s Secret Megabrand and intimate apparel; Diane Neal, chief executive officer and president, Bath & Body Works.
Major Products:
Victoria’s Secret Beauty—fragrances, skin care and cosmetics; Bath & Body Works—personal care, beauty and home fragrance products marketed under the Bath & Body Works, C.O. Bigelow and The White Barn Candle Company.
New Products:
Bath & Body Works—Midnight Pomegranate body care; The White Barn Candle Company—Red Hot Passion, Tahitian Coffee and Tea home fragrance collections.Comments:
Leslie Wexner is getting personal. Although the Limited Brands chairman got his start in apparel, he sees the future in personal care, particularly beauty. No wonder then, that Limited divested its Express and Limited Stores last summer to focus on its two core brands, Victoria’s Secret and Bath & Body Works.In fact, in an interview with Women’s Wear Daily last fall, Mr. Wexner called Limited’s personal care business the fifth largest in the U.S., with Estée Lauder at No. 4. To build business further, the company is setting its sights on international markets since, as Mr. Wexner noted, unlike apparel, personal care and beauty products usually work well on a global basis.
Despite his confidence in the personal care market, BBW sales actually declined 2% last year to just under $2.5 billion. The decline was blamed on a drop in store traffic experienced throughout the year, and in particular, during the fourth quarter, which resulted in disappointing holiday sales.
Similarly, Victoria’s Secret beauty sales also declined, but Mr. Wexner insisted that he’s taking a long-term view.
“Brand loyalty to beauty and lingerie is very different than loyalty to apparel. Because of that loyalty, we get trial and repeat (business) in a way that apparel does not get,” he told WWD. “Both (beauty and lingerie) categories have significantly longer product life cycles and reduced markdowns, giving the business unusual characteristics and stability.”
For the first quarter of 2008, sales fell 16% to $1.9 billion, but net income surged 84%. Comparable store sales declined 8% for the quarter.
On May 29, the company appointed Peter Horvath as executive vice president of business integration. He will work on a variety of operational strategies and initiatives with both Martyn Redgrave, executive vice president and chief administrative officer, and Mr. Wexner.