Victoria Hasn't Lost Her Secret
L Brands is not without its challenges, but we think the market has overreacted to headwinds.
With an array of short-term challenges, falling comparable sales in go-forward categories at Victoria’s Secret, and significant exposure to the struggling mall distribution channel, it is no surprise that L Brands’ (LB) shares have fallen over 35% in value since the beginning of 2017.
Adding further concern to the story, management said just a year ago that it believed it could continue to increase North America square footage in the low- to mid-single-digit range annually despite falling levels of mall foot traffic.
Bridget Weishaar does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.