News

Technology upgrades helping Victoria's Secret exceed sales expectations

May 7, 2012

Doubling its technology infrastructure investments on inventory management and point-of-sale systems may have helped Limited Brands, owner of Victoria's Secret and Bath & Body Works, to become one of a few major retailrs to beat sales expectations in April. According to a story on CIO Journal, the technology is helping to company to do a better job re-stocking the lingerie and skin care products that are hot and dumping the ones that are not, said John Morris, a retail analyst at BMO Capital.

Investments in technology infrastructure and distribution centers rose from $96 million in 2010, to $135 million in 2011. And the upgrades are expected to continue to increase to $175 million in 2012, according to Cowen Group.

Limited Brand's sales of $659 million in April beat expectations with a same-store rise of 6 percent, a 4-percent increase over analysts' predictions. Major retailers, including Gap, Target, Macy's Saks and Wet Seal, each reported sluggish sales for April.

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