12/17/2019 Victoria's Secret Is Dragging On L Brands, Analysts Say After Q2 Print

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L Brands Inc (NYSE: LB) may have beaten estimates
Skyworks Solutions, Inc.
in its second-quarter report Wednesday, but shares
CSIQ 20.70 +0.39
are still reeling after the retailer cut its 2018 EPS Canadian Solar Inc.

estimate. The company's flagship Victoria's Secret JBH.AX 38.62 +0.02

appears to be stuck in its ways and struggling with aJB Hi-Fi Limited
changing fashion consumer landscape.

Analysts Weigh In

Credit Suisse analyst Michael Binetti maintained a

Neutral rating on L Brands and lowered the price
target from $35 to $31.
Bank Of America Merrill Lynch analyst Lorraine
Hutchinson reiterated an Underperform and
lowered the price target from $29 to $26.
UBS analyst Jay Sole maintained a Neutral rating
and lowered the price target from $32 to $31.
Bernstein analyst Jamie Merriman maintained an
What to Read Next
Outperform and lowered the price target from $47
to $44.
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12/17/2019 Victoria's Secret Is Dragging On L Brands, Analysts Say After Q2 Print

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Victoria’s
Search Secretsymbols
for news, has suffered quite the fall from grace.
or companies
The brand's issues may now hinge on Pink, Credit
Finance Home Watchlists Suisse's Binetti said
My Portfolio in a note. It Premium
Screeners was announcedMarkets
this Industries
week that Pink CEO Denise Landman will retire at the
end of the year. Tesla Jumps as Good-News Rush Puts C
Into Hibernation
Bloomberg
“We fear VS’ ongoing brand issues are radiating to
Pink, where LB is stepping up promos to support
sales,” the analyst said.

Amy Hauk, Bath & Body Works' president of product

development, is set to replace Landman as Pink CEO,
creating some transition risk, Binetti said.

“With every quarter that goes by, the VS problems

seem more broad-based and we just don’t see LB Credit Suisse investigates report of surve
on second executive
articulating an aggressive enough strategic shift to
Reuters
address changing competitive dynamics."

Pink generates 23 percent of L Brands' revenue and

powered most of Victoria’s Secret’s 2015 and 2016
growth, said Bank of America's Hutchinson. The brand
remained strong until the 2017 holiday season, she
said.

“Since then, struggles with lounge have caused sales

and margins to soften." Tesla touches 2-year high on China facto
optimism
Yahoo Finance Video
KeyBanc Capital Markets analyst Edward Yruma
said the weakness at Pink spells even more trouble for
L Brands.

"We note that PINK has been an outsized driver of

overall growth in recent years, and deteriorating
performance could cause a more prolonged period of
weakness for LB," the analyst said.
UBS analyst Sole said L Brands is an inexpensive
Visa warns that hackers are scraping car
stock and Victoria's Secret is "a great brand going details from gas pumps
through tough times." Engadget

The company needs a catalyst, he said.

View more earnings on LB

“We think VS has a brand image problem, but LB

hasn’t indicated it’s willing to evolve. Until it does, we

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12/17/2019 Victoria's Secret Is Dragging On L Brands, Analysts Say After Q2 Print

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see materialSports Entertainment
risk its financial Search
performance Mobile
deteriorates More

further." Pound falls as Boris Johnson moves to m

Search for news, symbols or companies illegal to delay Brexit
If Victoria’s Secret's messaging does in fact change,
Yahoo Finance UK

Finance Home Watchlists it could serve as the

My Portfolio catalyst thatPremium
Screeners Sole said could
Markets Industries
cause him to reconsider his stance on the stock.

Bernstein's Merriman said the L Brands story is

unchanged: Victoria’s Secret disappoints while Bath &
Body Works outperforms.

The stock has potential catalysts like the relaunch of

products such as Body by Victoria, but that's a 2019
No school, no trains, no Eiffel Tower: Fra
initiative, the analyst said. strike
Associated Press

“Until Victoria’s Secret shows some signs of

stabilization, we expect the stock to be rangebound in
the low $30 range."

L Brands shares are down 53 percent year-to-date.

Price Action

L Brands shares were down 11.7 percent at $28.16

near the end of Thursday's trading session. What to watch in the markets: Tuesday, D
Yahoo Finance Video

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Photo by Samantha Marx/Wikimedia.

Latest Ratings for LB The stock market is melting up and new B

America data proves it
DateFirmActionFromTo Yahoo Finance
Aug 2018CitigroupMaintainsBuy Buy
Aug 2018Barclays MaintainsEqual-WeightEqual-Weight
Aug 2018KeyBanc MaintainsUnderweight Underweight

View More Analyst Ratings for LB

View the Latest Analyst Ratings

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