Which Is The Most Important Segment For L Brands’ Future Growth?

Victoria’s Secret (VS) Stores is the most important segment for L Brands’ growth. As we see here, almost 50% of L Brands’ projected revenues is contributed by the VS stores. In comparison, the second most important segment is Bath & Body Works stores which  is expected to contribute around 25% to 30% of future revenues. Since, VS stores are so important, it is precisely the reason why a restructuring of the segment and a layoff of around 300 employees from this division had dampened the company’s stock price by over 30% year-to-date. Along with repositioning its Beauty business, VS is shedding off inventories from its non-core businesses such as swimwear, shoes, and accessories which were so far being sold through the digital channel. The non-core business contributed to over $500 million in sales in the last year.

Have more questions on L Brands? See the links below.

• What Is L Brands’ Revenue And EBITDA Breakdown?
• How Has L Brands’ Revenue And EBITDA Composition Changed Over 2012-2016E?
• L Brands Q4 2015 Pre-Earnings Report
• L Brands 2015 Year In Review
• How Was L Brand’s Monthly Performance In February 2016?
• How Was L Brand’s Monthly Performance In March 2016?
• What Is L Brands’ Fundamental Value Based On 2016 Estimated Numbers?
• How Did L Brands’ Different Segments Perform Over The Last 5 Years?
• What Are The Key Takeaways From L Brands Q1 FY2016 Earnings Results?
• Why Is Victoria’s Secret Undergoing Restructuring Changes?
• Key Takeaways From L Brands May 16 Performance Report
• Why Has L Brands’ Stock Price Declined By Around 30% Year-To-Date?

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