After stubbing its toe in the most recent back-to-school and Christmas seasons, the Pink label has once again gained traction among consumers. In L Brands' same-store sales report on Thursday, the college-oriented intimates and apparel line was listed as one of the drivers behind Victoria's Secret's 2 percent comparable-store sales growth in May.
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Chen said ahead of the results that Pink's struggles in the back half of 2013 were tied to merchandise that wasn't quite fashion right. Since then, Victoria's Secret has done a much better job crafting Pink's assortment, "balancing collegiate versus fun and flirty." He said Pink could easily double its current store count, which totals about 90 locations around the U.S.
"I think Pink's done a good job defining themselves differently," he said.
It doesn't hurt that the brand's expansion efforts come at the same time as consolidation among some of the other big names in teen retail.
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Abercrombie & Fitch is in the process of shuttering its 24 standalone Gilly Hicks stores, which sell bras, underwear and clothing for the teen customer. By the end of the company's fiscal year, the label will only be available in Hollister stores and online.
American Eagle is also reducing its exposure to the teen intimates category. In the first quarter, the retailer closed 14 of its Aerie stores, and it plans to close another 50 over the next two years.