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This Is Why L Brands Is Shuttering All Its Henri Bendel Stores

Andria Cheng While that business is small compared to the $12.6 billion in sales L Brands generated last year, the loss was outsized in comparison. L Brands other segment, which includes Henri Bendel and the companys acquired Canadian lingerie chain La Senza, has posted year-to-date operating loss of $93 million, which isatminimumthe third year its not made money. That was about half of Victorias Secrets operating profit of $197 millionafter a 42% slumpduring the same period. Bath & Body Works, with about 1,700 stores, was the only bright spot, with operating income rising 13% to $292 million. Henri Bendels losses and closings also reflected challenges facing the brick-and-mortar luxury space as it struggles to compete against an increased shift to online purchases on marketplaces like Farfetch, which recently filed its IPO plan. The sector also is competing againstchanging consumer preferences to pare back on fashion to spend more on things like the latest iPhone and other gadgets. U.S. store-based luxury department stores have seen their sales sliding 23% between 2012 and 2017 to $5 billion last year, according to Euromonitor.

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