We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is L Brands Rallying on Rumored Sale of Victoria's Secret?
Read MoreHide Full Article
L Brands, Inc.’s shares surged 12.9% during the trading session on Jan 29. The stock gained momentum on media speculations that the company is exploring alternatives for its beleaguered Victoria’s Secret lingerie brand. Reports also highlighted the possible stepping down of the company’s CEO, Les Wexner.
Meanwhile, no official confirmation was made by L Brands on the news. Nonetheless, per the reports, management has been in talks with Sycamore Partners, a private-equity firm, for a full or partial sale of the brand.
Industry experts are of the opinion that the move will help simplify the company’s organizational structure and allow it to invest in profitable zones. Some of the market pundits have even emphasized on the spinning-off of the Bath & Body Works chain and a board overhaul.
Weakness in the Victoria’s Secret brand, which once ruled the U.S. lingerie market, has been marring the company’s overall performance. L Brands is struggling to make a comeback in the wake of rising competition from intimate apparel brands like ThirdLove and Aerie. Also, the company has often been accused of failing to bring in trendy merchandise by industry experts.
We note that L Brands had earlier taken measures to fix the underperforming brand by introducing merchandise and marketing strategy as well as slashing the workforce to contain costs. But, these measures have failed to generate the desired results.
L Brands’ recent disappointing holiday performance, mainly owing to weak sales at Victoria's Secret, clearly demonstrates that this Zacks Rank #5 (Strong Sell) company’s actions to revive brand is failing to resonate with changing consumer preferences. While the overall company’s net sales fell 4.1%, comparable sales dropped 3% during the holiday period. Victoria's Secret comparable sales dropped 12% during the combined November and December period, wider than the decline of 4% in the prior-year period. Nonetheless, Bath & Body Works put up a stellar show with a 9% jump in comparable sales.
Zumiez Inc. (ZUMZ - Free Report) , also a Zacks Rank #1 stock, boasts an expected long-term earnings growth rate of 12%.
Boot Barn Holdings, Inc. (BOOT - Free Report) has an impressive long-term earnings growth rate of 17% and a Zacks Rank #2 (Buy).
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Bigstock
Is L Brands Rallying on Rumored Sale of Victoria's Secret?
L Brands, Inc.’s shares surged 12.9% during the trading session on Jan 29. The stock gained momentum on media speculations that the company is exploring alternatives for its beleaguered Victoria’s Secret lingerie brand. Reports also highlighted the possible stepping down of the company’s CEO, Les Wexner.
Meanwhile, no official confirmation was made by L Brands on the news. Nonetheless, per the reports, management has been in talks with Sycamore Partners, a private-equity firm, for a full or partial sale of the brand.
Industry experts are of the opinion that the move will help simplify the company’s organizational structure and allow it to invest in profitable zones. Some of the market pundits have even emphasized on the spinning-off of the Bath & Body Works chain and a board overhaul.
Weakness in the Victoria’s Secret brand, which once ruled the U.S. lingerie market, has been marring the company’s overall performance. L Brands is struggling to make a comeback in the wake of rising competition from intimate apparel brands like ThirdLove and Aerie. Also, the company has often been accused of failing to bring in trendy merchandise by industry experts.
We note that L Brands had earlier taken measures to fix the underperforming brand by introducing merchandise and marketing strategy as well as slashing the workforce to contain costs. But, these measures have failed to generate the desired results.
L Brands’ recent disappointing holiday performance, mainly owing to weak sales at Victoria's Secret, clearly demonstrates that this Zacks Rank #5 (Strong Sell) company’s actions to revive brand is failing to resonate with changing consumer preferences. While the overall company’s net sales fell 4.1%, comparable sales dropped 3% during the holiday period. Victoria's Secret comparable sales dropped 12% during the combined November and December period, wider than the decline of 4% in the prior-year period. Nonetheless, Bath & Body Works put up a stellar show with a 9% jump in comparable sales.
Stocks to Capture Your Attention
Chico's FAS, Inc. has an impressive long-term expected earnings growth rate of 15% and flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Zumiez Inc. (ZUMZ - Free Report) , also a Zacks Rank #1 stock, boasts an expected long-term earnings growth rate of 12%.
Boot Barn Holdings, Inc. (BOOT - Free Report) has an impressive long-term earnings growth rate of 17% and a Zacks Rank #2 (Buy).
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>