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Stock Strategist

Victoria Hasn't Lost Her Secret

L Brands is not without its challenges, but we think the market has overreacted to headwinds.

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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.