The Victoria’s Secret Fashion Show, Coming to a Store Near You

By Christina Cheddar Berk, CNBC.com

Model Doutzen Kroes walks the runway sporting a red ensemble during the 2011 Victoria's Secret Fashion Show at the Lexington Avenue Armory on Nov. 9, 2011, in New York.Model Doutzen Kroes walks the runway sporting a red ensemble during the 2011 Victoria's Secret Fashion Show at …The annual Victoria's Secret Fashion Show is an event fans look forward to each year, but it has usually been focused on aspiration and brand building - until now.

As Limited Brands the retailer's parent, gears up for the holiday season, they are planning more promotional events around the fashion show, which airs Nov. 29 on CBS.

The day after the fashion show is broadcast, the products that were featured on the runway will be at Victoria Secret stores, which is a new strategy, said John Morris, an analyst at BMO Capital Markets. (To get a glimpse of these looks, see our slideshow with scenes from the 2011 Victoria's Secret Fashion Show.)



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This year's star-studded show had six different themes, and featured 38 models and 69 different looks. It kicked off with a ballet and "Passion" section, which was then followed by a "Super Angels" theme, and an aquatic section that showcased Maroon 5 frontman Adam Levine and his model girlfriend Anne Vyalitsyna. The show wrapped up with a New Orleans-style "I Put a Spell on You" section and a disco-driven Club Pink finale.

Kayne West, Jay-Z, and Nicki Minaj also performed during the show.

The event is an annual tradition for the company, which is up against some challenging comparisons with last year, when Victoria's Secret relaunched its popular Miraculous bra. The company is optimistic, however, that it has a lot of momentum and a strong assortment and fashionable designs, Morris said. By Christina Cheddar Berk, CNBC.com

The analyst recently met with Victoria's Secret's CEO Sharon Turney and Bath & Body Works CEO Nick Coe to go over their strategies for the holiday season, and said what he saw was largely positive.
Morris said he was encouraged that the company is finding opportunities to integrate their product lines and cross-market items, and its strategy with the Victoria's Secret Fashion show is just one example.
Victoria's Secret is also matching more fragrances with lingerie, such as with its Dream Angels and Gorgeous lines, according to Morris. He said the company did this with its Bombshell bra and it saw average dollar sales - the amount shoppers spend during a transaction - rise as a result.
There also is a greater focus on matching sets of bras and panties, and the effort has been helping to deliver double-digit sales growth, Morris said.

According to Morris, the more matched look is consistent with the direction fashion is heading, more broadly speaking. Of late, trends in fashion have focused on "more put together" looks, and this keeps with that trend, he said.

While all of this is good news for the business, the tough thing for investors is that Limited's current stock price appears to be factoring it in already, according to Morris.

Morris, who rates Limited shares "market perform," doesn't own shares of the stock personally.



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