New Dublin store dents Victoria’s Secret's profits in Europe

By

Barbara Santamaria

Published
May 30, 2017

Victoria’s Secret said pre-opening costs at its new Dublin store were partly to blame for a fall in the profitability of its European business, according to a media report.

The flagship unit on Dublin’s Grafton Street is due to open in the fourth quarter of 2017 after a major refurbishment and restyling. The changes include a new façade and the reconfiguration of the internal layout.

The highly anticipated new store occupies a space of more than 29,000 sq ft over three floors, and will produce rental income of €1.85 million a year, setting a new benchmark rental value for Grafton Street.

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In addition to lingerie, the Grafton Street shop will sell the PINK range as well as the brand’s fragrance and beauty line. Victoria’s Secret has also a store in Terminal 2 Dublin Airport, but the new shop will mark the label’s debut in the city centre.

The lingerie chain’s owner, L Brands, posted monthly sales of $720 million (€644 million) in April, down 2% year-on-year. The company’s European sales were also hit by the pounds’ weakness, said The Times.