VSCO - Stock Market Sell-Off: Is Bath & Body Works a Buy?
2023-04-17 08:45:00 ET
Wall Street can be very demanding and, sometimes, push management teams to make decisions that may not be in the best interest of the business. That, in turn, usually means that whatever has been done is also not in the best interests of shareholders. So far, it looks like Bath & Body Works (NYSE: BBWI) , formerly known as L Brands, has fallen into this trap. And 2023 does not look like it will be providing investors a respite from the pain.
When a company has multiple divisions, a frequent refrain from Wall Street analysts and investors is that it should split up so that the divisions can be valued separately. Often it is suggested that the laggard division can better focus on its problems and improve results while the better-performing operation can be valued based on its own merits.
That sounds good, but it doesn't always work out quite that way. L Brands is a prime example, with the company once housing both Bath & Body Works and Victoria's Secret (NYSE: VSCO) .
For further details see:
Stock Market Sell-Off: Is Bath & Body Works a Buy?