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Tuesday, June 12, 2018
decision in go forward category comps
VS comparable sales have been in mostly negative territory since end 2016, and operating margins are down 500 basis points from 2015/2016 levels, due both to sales deleverage and merchandise margin declines, as the company resorts to price cuts to fight foot traffic declines. For full fiscal year 2017, comparable store sales fell 8%, both with and without DTC. Management attributes 3% of the fall to discontinuation of VS swim and apparel categories, while avoiding any mention to the positive impact of the decision in go forward category comps.
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