Niagara Gazette

Web Extra

November 13, 2012

Runway show the key to Victoria's Secret success

(Continued)

NEW YORK —

"As soon as this one finishes they start working on the next," said supermodel Miranda Kerr. "There's so much attention to detail in the underwear; everything is hand- stitched."

The chain does use Facebook, Twitter and e-mail to draw Web traffic and build excitement around new collections and events such as the fashion show. Web and catalog sales rose 4 percent to $1.56 billion in the latest year, a quarter of the business, while revenue at Victoria's Secret's 1,000-plus stores rose 14 percent to $4.56 billion.

Still, the Internet doesn't drive a lot of "emotional content," Chief Financial Officer Stuart Burgdoerfer, said in a presentation to investors on Oct. 17. Victoria's Secret and Bath and Body Works emphasize the product and in-store experience above all and aren't aiming to be leaders in technology, he said.

Victoria's Secret spends about $220 million annually on the catalogs sent to customers' homes each year, including postage, creative, printing, paper and circulation, the biggest expense of its direct business, according to a job posting on its website.

The company's 15 percent stock gain this year trails the rallies at specialty retailers Urban Outfitters, which has added 28 percent and Gap, with an 81 percent rise. It has beaten both in the past five years, as well as the Standard & Poor's 500 Retailing Index by more than doubling to $46.48 as of Nov. 9.

Limited Chief Executive Officer Les Wexner, the longest- tenured CEO in the S&P 500, according to data compiled by Bloomberg, has spun off apparel brands including the Limited stores, Abercrombie & Fitch Co., Express, while keeping Victoria's Secret and Bath & Body Works.

"He truly views intimate apparel and personal care as more attractive categories," Maschmeyer said. Victoria's Secret, the biggest specialty retailer for intimate apparel, has created demand for items like push-up bras and colorful underwear in the way Lululemon Athletica has helped create a market for trendy yoga wear, she said.

Text Only | Photo Reprints
Web Extra
Featured Ads
House Ads
AP Video
Raw: Corruption Trial Begins for Former Va Gov. The Carbon Trap: US Exports Global Warming UN Security Council Calls for Gaza Cease-fire Traditional African Dishes Teach Healthy Eating 13 Struck by Lightning on Calif. Beach Baseball Hall of Famers Inducted Israel, Hamas Trade Fire Despite Truce in Gaza Italy's Nibali Set to Win First Tour De France Raw: Shipwrecked Concordia Completes Last Voyage Raw: Sea Turtle Hatchlings Emerge From Nest Raw: Massive Dust Storm Covers Phoenix 12-hour Cease-fire in Gaza Fighting Begins Raw: Bolivian Dancers Attempt to Break Record Raw: Israel, Palestine Supporters Rally in US Raw: Air Algerie Flight 5017 Wreckage Virginia Governor Tours Tornado Aftermath Judge Faces Heat Over Offer to Help Migrant Kids Kangaroo Goes Missing in Oklahoma More M17 Bodies Return, Sanctions on Russia Grow Raw: Deadly Tornado Hits Virginia Campground
Opinion
House Ads
Night & Day
Twitter News
Follow us on twitter
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Front page