Sales: $3.3 billion for personal care and cosmetics. Corporate sales: $11.4 billion for the year ended Feb. 1, 2015.
Key Personnel: Leslie H. Wexner, chairman and chief executive officer; Charles C. McGuigan, chief operating officer; Sharen J. Turney, president and chief executive officer, Victoria’s Secret; Nicholas Coe, president and chief executive officer, Bath & Body Works; Stuart B. Burgdoerfer, executive vice president and chief financial officer.
Major Products: Bath & Body Works home fragrances and personal care; Victoria’s Secret fine fragrances.
New Products: Tahiti Island Dream shower gels and bar soaps, Victoria’s Secret Heavenly Summer eau de parfum, VS Fantasies Love Addict fragrance mist.
Comments: Corporate sales rose 6% last year, as did sales for Bath & Body Works (BBW), which calls itself the largest specialty retail beauty brand in the world. L Brands maintains that BBW holds the No. 1 spot in the US for several categories, including body lotion brand, shower gel brand, fine fragrance mist, fragrance collection (Japanese Cherry Blossom), home fragrance diffuser (Wallflower), liquid hand soap brand, hand sanitizer brand, spa collection and aromatherapy collection. To maintain momentum, more than 85 remodeling jobs in the works for Bath & Body Works, including White Barn. In 2014, BBW added 30 franchise stores including new locations in Asia and Latin America. This year, L Brands expects to add 50 new stores.
It was a different story for the Victoria Secret CFT business. Victoria’s Secret beauty sales declined due to the elimination of Victoria’s Secret makeup. Despite de-emphasizing cosmetics, the company insists three Victoria’s Secret fragrances—Bombshell, Heavenly and Tease—rank among the top 10 fragrances in the US. Last year, the company added 101 Victoria’s Secret Beauty & Accessories stores, bringing the total to 299 at the end of fiscal 2014. This year, the plan calls for adding as many as 125 new VSBA stores, including nine in China alone.
Its heritage is bricks and mortar, but L Brands does nearly $2 billion in online sales. Bath & Body Works Direct grew 18% last year and has a five year CAGR of 20%. During the year L Brands continued to expand BBW and Victoria’s Secret Beauty with partners around the world.
For the first quarter ended May 2, 2015, corporate sales rose 5% to $2.5 billion. BBW’s sales rose 4% during the period to $613 million, according to L Brands.