LB – Market expectations are for Uniform ROA compression, but management is confident about their inventory, promotions, and development work
February 25, 2020
- L Brands, Inc. (LB:USA) currently trades below recent averages relative to UAFRS-based (Uniform) Earnings, with a 16.9x Uniform P/E. However, management is confident about their inventory assortment, promotional strategy, and Victoria’s Secret development work
- Specifically, management is confident they have broad assortments of inventory and that they are working to strike the right balance between promotional activity and getting paid for their work. In addition, they are confident they are doing a lot of development work at Victoria’s Secret to make up for weakness in legacy core frames and induce significant relaunch activity in 2020
