Victoria’s Secret Parent Company Beats Earnings Expectations, Causing Shares to Surge

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Victoria’s Secret may have fallen out of favor among some consumers, but they’re rising in the eyes of investors.

Victoria’s Secret’s Angels may have fallen out of favor among some consumers, but they’re rising in the eyes of investors.

For the three-month period ending Aug. 1, L Brands registered $2.3 billion in total company revenues, down from $2.9 billion a year earlier. L Brands lost $49.6 million during the quarter as a result, compared with gains of $37.6 million a year earlier. “The second quarter of 2020 continued to be an unprecedented time for the world, the retail industry and our business,” the company said.

“Though [L Brands’] plan to spinoff [Victoria’s Secret] was foiled earlier this year, the stock has had a strong run as a new story has developed,” Ike Boruchow, senior retail analyst at Wells Fargo, wrote in a note. “[Management] appears deeply committed to readying each concept to stand on its own, particularly as steps are being made toward cleaning up the [Victoria’s Secret] business, which should make it a much cleaner asset down the road when they reengage with potential buyers.

As of Aug. 1, L Brands’ total store fleet was 2,709 locations, spread across North America, the U.K. and China. Within the Victoria’s Secret brand there are 884 Victoria’s Secret stores in North America and 90 internationally.

 

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