A 'scary' development is taking place at Victoria's Secret (LB)

pulse

August 20, 2018 7:43 PM

Victoria's Secret brand is breaking its brand image and losing pricing power, says Jefferies analyst Randal Konik.

Pink is now more promotional than core Victoria's Secret.

announced $3 panties for members this past weekend. In the eyes of Jefferies analyst

Our panty price tracker for over a decade shows this is the lowest ever price point for panties across VS or PINK,"

Pricing power continues to erode as the brand extends more and more promos and yet the consumer still isn't responding. It's a major red flag considering Pink is a $3 billion business and accounted for all of segment growth over the past 5 years,

"Victoria's Secret brand is broken and PINK is now breaking," Konik reiterated in Monday's note.

$23 price target — about 30% below where shares are trading — and

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