LB - Is L Brands Stock a Buy?
As with many other retailers, COVID-19 hurt L Brands' (NYSE: LB) fiscal first-quarter results (covering the period that ended May 2). The company reported a $318 million operating loss, compared to operating income of $153 million in the year-ago period. However, this is not merely a blip -- the company's operating income has been declining for several years.
Private-equity firm Sycamore Partners exacerbated L Brands' woes after deciding in April to walk away from its decision to purchase 55% of L Brands' troubled Victoria's Secret business, which consists of its namesake and Pink brands.
These events are in the past, of course. Investors want to know how L Brands will fare in the future when deciding whether the stock represents a buying opportunity. A potential deal involving Victoria's Secret could save the day.