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.
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
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.
L Brands, Inc. (LTD): Read the Full Research
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