Direct). By assuming EBIT margins for direct are 600bps higher than in store (management confirmed on 4Q17 call that «our online businesses are more profitable than our store based businesses.»), we are able to estimate the cost incurred per VS store in the US. For example, we know that EBIT margins for VS overall is 12.6% in 2017, and we know that direct sales represented 20% of total VS sales.
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