NYSE:LB

Stock Analysis Report

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Executive Summary

L Brands, Inc. operates as a specialty retailer of women’s intimate and other apparel, personal care, and beauty and home fragrance products.


Snowflake Analysis

Moderate growth potential and overvalued.


Similar Companies

Share Price & News

How has L Brands's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LB's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

19.0%

LB

6.2%

US Specialty Retail

2.0%

US Market


1 Year Return

-24.9%

LB

-0.1%

US Specialty Retail

7.1%

US Market

Return vs Industry: LB underperformed the US Specialty Retail industry which returned -5.3% over the past year.

Return vs Market: LB underperformed the US Market which returned 4.1% over the past year.


Shareholder returns

LBIndustryMarket
7 Day19.0%6.2%2.0%
30 Day36.7%12.7%6.0%
90 Day-20.6%-8.6%-0.05%
1 Year-21.3%-24.9%1.3%-0.1%9.5%7.1%
3 Year-61.5%-67.4%22.2%16.3%30.7%22.1%
5 Year-74.4%-80.3%17.8%7.7%55.6%38.0%

Price Volatility Vs. Market

How volatile is L Brands's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is L Brands undervalued compared to its fair value and its price relative to the market?

4.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LB ($15.08) is trading below our estimate of fair value ($16.77)

Significantly Below Fair Value: LB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: LB is unprofitable, so we can't compare its PE Ratio to the Specialty Retail industry average.

PE vs Market: LB is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LB has negative assets, so we can't compare its PB Ratio to the US Specialty Retail industry average.


Next Steps

Future Growth

How is L Brands forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

40.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LB is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: LB is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: LB's is expected to become profitable in the next 3 years.

Revenue vs Market: LB's revenue (3.1% per year) is forecast to grow slower than the US market (8.9% per year).

High Growth Revenue: LB's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if LB's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has L Brands performed over the past 5 years?

-29.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LB is currently unprofitable.

Growing Profit Margin: LB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LB is unprofitable, and losses have increased over the past 5 years at a rate of -29.2% per year.

Accelerating Growth: Unable to compare LB's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LB is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (-3.4%).


Return on Equity

High ROE: LB's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is L Brands's financial position?


Financial Position Analysis

Short Term Liabilities: LB has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: LB has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: LB has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: LB's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: LB's debt is well covered by operating cash flow (22.3%).

Interest Coverage: LB is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is L Brands's current dividend yield, its reliability and sustainability?

4.56%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate LB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate LB's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LB's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: LB is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LB's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.8yrs

Average management tenure


CEO

Andrew Meslow

no data

Tenure

Mr. Andrew Meslow has been Chief Executive Officer and Director of L Brands, Inc., since May 14, 2020. He serves as Chief Executive Officer at Bath & Body Works, LLC since February 2020. He served as Chief ...


Leadership Team

NamePositionTenureCompensationOwnership
Leslie Wexner
Founderno dataUS$3.78m8.87% $421.8m
Stuart Burgdoerfer
Executive VP13.08yrsUS$3.91m0.031% $1.5m
Charles McGuigan
COO and CEO & President of Mast Global8yrsUS$5.64m0.080% $3.8m
Shelley Milano
Executive VP & Chief Human Resources Officer2.08yrsUS$3.41m0.022% $1.1m
James Bersani
President of Real Estate14.83yrsUS$3.31m0.078% $3.7m
Andrew Meslow
CEO & Directorno datano data0.091% $4.3m
Amie Preston
Chief Investor Relations Officer9.75yrsno datano data
Samuel Fried
Executive VP of Lawno datano datano data
Bruce Soll
Senior VP & Counsel of Company Affairsno datano datano data
Edward Razek
President of Brand & Creative Services and Chief Marketing Officer of Brand & Creative Servicesno datano datano data

9.8yrs

Average Tenure

61yo

Average Age

Experienced Management: LB's management team is seasoned and experienced (9.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Leslie Wexner
Founderno dataUS$3.78m8.87% $421.8m
Andrew Meslow
CEO & Directorno datano data0.091% $4.3m
Michael Morris
Independent Director7.67yrsUS$259.57k0.0037% $174.1k
Robert Schottenstein
Independent Director2.75yrsUS$248.82k0.0016% $77.5k
Donna James
Independent Director17.33yrsUS$308.82k0.0079% $373.9k
Abigail Wexner
Non-Independent Director23.33yrsUS$273.81k4.04% $192.1m
Stephen Steinour
Independent Director6.33yrsUS$223.83k0.0083% $392.4k
Patricia Bellinger
Independent Director2.75yrsUS$243.80kno data
Sarah Nash
Independent Chair & Lead Independent Directorno dataUS$208.28kno data
Anne Sheehan
Independent Director1yrUS$199.31kno data

6.3yrs

Average Tenure

62yo

Average Age

Experienced Board: LB's board of directors are considered experienced (6.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

L Brands, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: L Brands, Inc.
  • Ticker: LB
  • Exchange: NYSE
  • Founded: 1963
  • Industry: Apparel Retail
  • Sector: Retail
  • Market Cap: US$4.756b
  • Shares outstanding: 276.53m
  • Website: https://www.lb.com

Number of Employees


Location

  • L Brands, Inc.
  • Three Limited Parkway
  • Columbus
  • Ohio
  • 43230
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LBNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 1973
0JSCLSE (London Stock Exchange)YesCommon StockGBUSDFeb 1973
LTDDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1973
LTDXTRA (XETRA Trading Platform)YesCommon StockDEEURFeb 1973
LB *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNFeb 1973
LBRAWBAG (Wiener Boerse AG)YesCommon StockATEURFeb 1973
LBRN34BOVESPA (Bolsa de Valores de Sao Paulo)BDR REPR 1/4 COM USD0.50BRBRLJul 2015

Biography

L Brands, Inc. operates as a specialty retailer of women’s intimate and other apparel, personal care, and beauty and home fragrance products. The company operates in three segments: Victoria’s Secret, Bath & Body Works, and Victoria's Secret and Bath & Body Works International. Its products include bras and panties, loungewear, athletic attire, shower gels and lotions, aromatherapy, soaps and sanitizers, and body care accessories. The company offers its products under the Victoria’s Secret, PINK, Bath & Body Works, White Barn, C.O. Bigelow, and other brand names. It sells its merchandise through company-owned specialty retail stores; through its Websites; and through franchises, licenses, and wholesale partners. As of May 20, 2020, the company operated 2,897 company-owned specialty stores in the United States, Canada, the United Kingdom, and Greater China, as well as sold its brands through approximately 700 franchised locations and online worldwide. The company was formerly known as Limited Brands, Inc. and changed its name to L Brands, Inc. in March 2013. L Brands, Inc. was founded in 1963 and is headquartered in Columbus, Ohio. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/28 01:55
End of Day Share Price2020/05/27 00:00
Earnings2020/05/02
Annual Earnings2020/02/01


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.