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11.21.2007

Lowered Victoria's Secret demand will reduce sales

Limited Brands said on Tuesday that decreased demand caused by scaling back circulation of its Victoria's Secret catalog could reduce direct sales in the fourth quarter by $150 million.
The company said that integration issues within a new distribution center meant it could not meet expected volume, so it planned to reduce its catalog circulation.

I wonder if they anticipated such a huge setback. The company foresaw some potential problems with the use of a new distributor and put measures in place to cushion the blow.

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