Victoria, TX

45% of Victoria’s Secret apparel stranded at sea in shipping jam: “Hold our nerve and play it out”

Amy Christie

The strain of global supply breakdowns has also got to Victoria’s Secret. Its CEO revealed that 45% of the ordered inventory for the fall season is stuck, with 100 ships unable to dock and unload the cargo.

What are the details?

Victoria’s Secret CEO, Martin Waters, revealed in a call that took place on Thursday that 45% of the inventory items ordered for the fall season were delayed while discussing third-quarter results, according to Insider.

Higher freight charges and late product arrivals will likely end up costing the company $150 million in total for the third and fourth quarter, Water said.

The CEO also pointed out that the company will be making decisions on either canceling orders that can’t be delivered before the holidays, or they might be importing specific items by air to avoid shipping jams.

Unfortunately, the delays are preventing the company from re-stocking the items that are selling very well, and this means they are missing out on major sales opportunities.

Waters stated that Victoria’s Secret has products on 100 ships that can’t dock and ship for now, so the mountain of products can’t reach customers.

And he is well aware of the negative effect delays will have on growth and sales objectives.

"I don't buy that scarcity equals faster selling; we don't see that happening at all. 25% of our PJs are late, which is clearly bad for business,” he shared during the meeting.

As of now, Victoria’s Secret has canceled 10 million items on its inventory list because they will not be on time for the holidays. It still expects to start 2022 with more products than usual, which could lead to higher discounts.

"We have just got to hold our nerve and let it play out," Waters concluded, mentioning that the delays are expected to affect inventory and sales in 2022 as well.

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Amy Christie is a passionate writer and journalist, always striving to bring out the positive and create meaningful connections.

Dallas, TX

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