L Brands' Victoria's Secret unit has been witnessing soft sales for quite some time now owing to stiff competition and consumers' changing preferences. This is likely to have weighed on the company's top-line performance. Further, the company has been grappling with strained margins for a while now. In a recent release on Jul 28, management guided net sales decline of approximately 20% on a year-over-year basis for the second quarter. L Brands projected sales decline of about 40% at its Victoria's Secret segment. Nonetheless, the company remains focused on cost containment, inventory management and curbing capital expenditures. Markedly, the company in co-operation with suppliers has been identifying opportunities to lower merchandise costs. This might have helped in improving merchandise margin rates at Victoria's Secret. Notably, Bath & Body Works segment has been the company's bright spot.