LB - L Brands is defended by Wells Fargo after a post-earnings share price dip
Bank of America keeps a Buy rating on L Brands ([[LB]] -3.4%) after taking in the retailer's Q1 earnings report. Analyst Lorraine Hutchinson points to the robust May-to-date cited by L Brands execs for both the Bath & Body Works and Victoria's Secret brands. Hutchinson also notes that all three major merchandise categories grew above 45% at BBW vs the 2019 levels. Meanwhile, Victoria's Secret is credited with maintaining a mid-teens operating margin in the near term. "We view the potential monetization of the VS business and transition of BBW to a standalone entity as an opportunity to create further value," updates Hutchinson on the appeal of L Brands. Yesterday: L Brands tops earnings estimates, preps for business split in August.
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L Brands is defended by Wells Fargo after a post-earnings share price dip