What happened

Challenges continued for L Brands, Inc. (NYSE:LB) in July as the Victoria's Secret parent posted another month of declining sales. According to data from S&P Global Market Intelligence, the stock fell 14% in July.

Looking at the chart below, we can see essentially all of those losses came at the beginning of the month as the company reported June sales:

LB Chart

LB data by YCharts.

So what

Shares fell 14.1% on June 6 as the company reported a 6% drop in total sales for the five-week period around June to $1.21 billion, and said comparable sales declined 9%.

Management said that adjusting for the exit from the swimwear and apparel businesses, comps would have increased 1%; however, that was not enough to appease the market, as analysts had expected a decline of 7% in comparable sales. Performance was also particularly concerning at Victoria's Secret, where comps fell 17%, indicating that weakness may extend beyond the exit from swimwear and apparel to its core products. At its secondary brand Bath & Body Works, comps were strong, increasing 8% in the month.

A bottle of "Wicked" perfume from Victoria's Secret

Image source: Victoria's Secret.

Now what

The pattern last month repeated itself throughout the year as sales of Victoria's Secret have fallen sharply, with the stock down 37% year to date. The lingerie chain may be losing sales to American Eagle Outfitters' Aerie, which has seen solid growth lately.

The stock dove again just this Thursday, falling 6.1% when the company reported weak July sales. Overall comparable sales were down 7%, or 2% adjusting for the lapse of the swimwear and apparel business. Victoria's Secret comps were down 10%.

The company also said it would report earnings per share for the second quarter at the high end of its previous guidance of $0.40 to $0.45.

L Brands' complete earnings report will be out later this month, but the woes at Victoria's Secret are likely to continue after the latest update.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.