Limited To Test Pink Chain

COLUMBUS, OH-Limited Brands may roll out a new chain highlighting its Pink lingerie gear toward women in their 20s that is now sold in departments at its Victoria’s Secret stores. This spring 90 to 95 Victoria’s Secret stores will have Pink departments, doubling the number currently in the chain, and the first Pink stand-alone store could open in the fall, executives said during their Q4 conference call.

During the company’s latest quarter, which ended Jan. 28, Victoria’s Secret year-on-year same-store sales rose 3%, driven mainly by Pink. However, the 1,000-store chain’s operating income “missed expectations” at just over $389 million, say executives.

The Bath & Body Works chain, with just over 1,500 units, fared worse, with year-over-year comps inching up 1%. In part, the low same-store sales and a $20-million operating income drop were due to the rollout of holiday merchandise too early, says Neil Fiske, chief executive of the chain. “By November and December, our stores looked largely the same to the customer,” he says. “We missed our plan significantly.” Executives now have a “very cautious view” on the chain’s upcoming performance.