Weakness at L Brands Is Likely to Continue
L Brands (NYSE: LB) has been plagued by declining sales for both its Victoria's Secret and Pink brands. The retailer announced weaker holiday sales and cut its earnings guidance for the fourth quarter. Its third-quarter sales results also came in below expectations. Shares have dropped 28% over the last six months.
While Victoria's Secret and Pink report declining sales, the company's Bath & Body Works business is posting higher growth rates, with a 9% increase in comparable sales for the nine-week holiday period ended Jan. 4. In contrast, Victoria's Secret's comparable store sales fell by 12% in the same period, below last year's 4% decrease. Victoria's Secret and Pink may be two fashion brands that have fallen out of favor with fickle consumers, and strength at Bath & Body Works may not be enough to keep growth going for the company.
Image source: Victoria's Secret.
Source Fool.com
