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