L Brands is also working with suppliers to reduce its merchandise costs and increase its merchandise margin rates at Victoria’s Secret. The company said its Spring inventory receipts were 45% lower than last year and Fall receipts were approximately 50% down compared to last year.
Additionally, L Brands is taking steps to reduce the operating losses of its company-owned business in China and the United Kingdom.
The company is expecting to save around $400 million from its cost reduction measures annually. It is predicting to end fiscal 2020 with $175 million in savings and to record pretax severance costs related to its workforce reduction.
L Brands committed to separating Bath & Body Works and Victoria’s Secret
Meadow also stated on Tuesday that L Brands’ Board and management remain committed to separating the Bath & Body Works and Victoria’s Secret businesses.
The company aims to drive long-term shareholder value by establishing Bath & Body Works as a pure-play public company and Victoria’s Secret as a separate standalone company.
