L Brands (LB), owner of Victoria's Secret and Bath & Body Works, is a bargain with a PE of only 12.5. EPS are expected to fall by 20% this year as the company calls a halt to its catalogue business and shuts it swimwear lines but the company is investing in growth internationally and on line.
International and online sales have been growing by 10% and 20% respectively and that could ramp up as the company directs time and resources to these areas. China, where LB only has 33 stores, is a huge opportunity.
It is true that retailers are suffering. But for companies such as LB, with a no. 1 market leading brand, the potential to successfully develop direct online sales is much stronger than for general retailers. Add in huge international opportunities and LB's valuation looks too cheap.
This is not a recommendation to buy or sell. Stocks not suitable for all investors. Please consult your advisor and do your own research.
Submitted April 23, 2017 at 02:19PM by InterestingNews1 http://ift.tt/2pTUzHM
