L Brands, Inc. (LTD): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report

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Summary:
L Brands posted better-than-expected third-quarter fiscal 2013 results and provided an encouraging earnings outlook for fiscal 2013. Retailers are spending more on promotions and coming up with lucrative discounts to drive traffic. Going forward, we believe Limited Brands with its operational efficiencies, new and innovative collection, remains well positioned to generate healthy sales. The company commands a market leading position in the lingerie, personal care, and beauty segments. The company's exclusive assortments remain popular among consumers and set it apart from peers. However, management expects November comps to decline in the low single-digit, with margins likely to remain muted in the fourth quarter. Moreover, stiff competition and lingering economic woes remain a short-term deterrent. Currently, we maintain our long-term Neutral recommendation on the stock.

Overview:

Founded in 1963 and based in Columbus, Ohio, L Brands, Inc. (LTD), which will now start trading under ticker symbol "LB" (effective December 2, 2013), is a specialty retailer of women's intimate and other apparel, beauty and personal care products, home fragrance products and accessories. The company sells its merchandise through specialty retail stores in the United States and Canada, which are primarily mall-based, and through its websites, catalogue and other channels. The company was formerly known as Limited Brands, Inc., and recently changed its name to L Brands in 2013. The company conducts its business primarily through two reportable segments Victoria s Secret and Bath & Body Works.

The Victoria's Secret segment sells merchandise under brand names such as Victoria's Secret, PINK and La Senza. La Senza trades in merchandise through retail stores located in Canada and licensed stores in 47 other countries.

The Bath & Body Works segment sells merchandise under brand names such as Bath & Body Works, C.O. Bigelow, White Barn Candle Company and other brands.

The "Other" segment includes Henri Bendel, featuring accessories and personal care products Mast Global, an apparel merchandise sourcing and production company serving Victoria's Secret, La Senza and third-party customers and Beauty Avenues, a personal care sourcing and production company serving Victoria s Secret, La Senza and Bath & Body Works.

As of November 2, 2013, L Brands operated 2,927 specialty stores in United States, which include 1,060 Victoria's Secret stores, 1,566 Bath & Body Works stores and 29 Henri Bendel stores. Moreover, in Canada, it operates 157 La Senza stores, 79 Bath & Body Works stores and 31 Victoria's Secret stores. Further, it operates 5 Victoria's Secret U.K. stores.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



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