Victoria’s Secret owner L Brands (LB) was the fourth worst stock, falling 59%. Victoria’s Secret CEO Jan Singer resigned in November amid a sales slump and competition from young companies challenging the brand’s grip on the lingerie industry.
Victoria’s Secret has been struggling to keep up with changing consumer tastes. Flashy fashion shows, push-up bras and celebrity models aren’t drawing women. Instead, women are clamoring for products with a better fit. Online stores like ThirdLove, Lively and True & Co. are using tech and harnessing data to offer custom sizes and new products.
Sales at Victoria’s Secret stores that have been open for at least a year dropped 6% last quarter. Victoria’s Secret has close to 1,000 stores in the United States, many of them tied to struggling malls.
HanesBrands (HBI), the parent of Hanes and Champion, was another struggling brand. It slid nearly 42%, in part because of a break with Target.
For 15 years, Target (TGT) sold C9 by Champion, a line of men’s, women’s and children’s activewear clothing and shoes. But Target said over the summer that it won’t renew its contract for the C9 line when the deal expires in early 2020.
Target was HanesBrands’ second largest buyer overall behind Walmart, accounting for 13% of the company’s sales last year.