LB - Why Victoria's Secret Will Continue to Be a Drag on L Brands
It's no secret that Victoria's Secret has been the reason for L Brands' (NYSE: LB) earnings woes. The company's once-adored lingerie brand has seen revenue dwindle as shoppers turn to rivals that focus more on comfort than glamour. And yet, this month analysts at Bank of America, Deutsche Bank, Keybanc, and Barclays all upgraded the shares, even suggesting an eventual L Brands breakup, according to CNBC.
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Investors may want to bet on an L Brands turnaround, and some might consider sales at the company's Bath & Body Works bath products chain a reason to be optimistic. Same-store sales rose 9% in the third quarter and were up 10% over the first three quarters of the year compared to the prior-year period.