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 shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.