L Brands Inc., the parent company of Victoria’s Secret, canceled this year’s fashion show which is expected to happen in December 2019.
Victoria’s Secret, an American company founded in 1977, is known for manufacturing stylish women’s clothes especially lingerie.
As a key sponsor of the popular program, Victoria’s Secret had been conducting fashion show TV series since 2001 despite the show was originally launched in 1995.
The Decline of Viewers and Customers
The decision for putting the show halt for this year was due to the rapid declining of Television audiences and losing a huge chunk of its customers over recent years.
The glamorous TV series, Victoria’s Secret fashion show which had a TV audience of 12 million in its first broadcasting in 2001 is now shrinking drastically. The program which is broadcasted by Walt Disney Co’s ABC network reduced its viewers to 3.3 million in the December 2018 Show.
On top of that, the company faces a huge decline in sales as the customers started opting the cheaper companies for buying their clothes.
Recently, the company suffers a net loss of $ 252 million in the third quarter because of the bad performance in sales.
As the Chief Financial Officer of L Brands Inc., Stuart Burgdoerfer explains, the decision for cancellation of the show is a part of the company’s marketing strategy to evaluate the downfall of the show.
He further adds,
“We think it’s important to evolve the marketing of Victoria’s Secret, we are figuring out how to advance the positioning of the brand and best communicate that to customers” referring to the recent decision of putting the show on hold.
Controversies behind L Brands Inc.
Recently, L Brands Inc. faces many controversies and negative reactions from numerous audience about the show.
The company has been alleged that the show is obsolete, sexiest, and lacks diversity. Last year, the company faced controversy on the ‘transsexual’ comment of Ed Razek, the then Chief Marketing Officer of the show.
The most crucial controversy is the friendship between the company’s CEO, Les Wexner and the late US banker, Jeffrey Epstein who died in the prison while a trial for sex trafficking was pending against him.
Wexner claims that Epstein mishandled about $ 46 million from him and his family. He further exclaims, “Being taken advantage of by someone who is … so depraved is something I’m embarrassed I’m even close to”.
Wexner’s company is severely affected by recent controversies. The company has had a significant low sales volume of 37% shares this year hitting a 52-week low of $ 15.80 per share on November 20, 2019.
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