L Brands Inc

On Wednesday, L Brands received notice from Sycamore Partners that it plans to terminate the deal to buy Victoria’s Secret.

L Brands (LB) stock surged 7.8% on January 3 as Bank of America (BAC) upgraded it to “buy” from “neutral.” However, L Brands stock shrunk 29.4% in 2019.

In today’s Get Real market newsletter, there’s optimism across markets. Netflix and GAP face issues and Boeing has some good news. Plus, the Tesla truck is out.

L Brands (LB) stock surged by 8.1% yesterday after the company’s third-quarter earnings announcement on November 20. Here’s why.

Gap stock fell about 6% in after-hours following management’s guidance cut. The company also announced the exit of CEO Art Peck.

US retail sales grew by 3.5% in the first half of 2019. The retail sector of the S&P 500 Index includes 29 stocks representing a broad variety of retailers.

L Brands (LB) stock was down 4.6% today as the company missed analysts’ sales expectations for the fourth quarter of fiscal 2018, which ended on February 2, 2019.

On January 10, L Brands (LB) reported sales of $2.48 billion for the five weeks ended January 5.

On January 10, L Brands stock fell 8.2% as of 9:58 AM EST following the announcement of its sales data for the five weeks ending January 5.

For the first three quarters of 2018, L Brands’ (LB) gross margin contracted by 240 basis points to 35.0% due to the lower gross margin at Victoria’s Secret.

On January 8, L Brands’ (LB) 12-month forward PE ratio was 10.4x.

Intimate apparel retailer L Brands has had a tough year. Its stock has shed 51.8% of its value as of December 18.

On December 13, L Brands announced that it will transfer ownership and control of its entire La Senza business to Regent LP.

L Brands (LB) reported third-quarter results on November 19.

L Brands (LB) reported third-quarter results on November 19.

So far, November 20 has been a bad day for the retail sector. Some big names have reported mixed results and lackluster guidance.

As of November 15, L Brands’ (LB) stock price is down 40.7% on a YTD basis to $35.69.

Wells Fargo upgraded L Brands to “outperform” from “market perform” on November 12. L Brands stock closed 1.4% higher on November 12.

In the first half of fiscal 2018, American Eagle Outfitters’ (AEO) gross margin expanded 130 basis points to 36.8%.

As of September 27, 56% of the 18 analysts covering American Eagle Outfitters (AEO) stock have given it “hold” ratings.

Abercrombie & Fitch (ANF) delivered YoY (year-over-year) sales growth in both the first and second quarters of fiscal 2018.

L Brands (LB) reported a 25% YoY (year-over-year) decline in second-quarter earnings per share to $0.36.

L Brands (LB) reported financial results for the second quarter of 2018 on August 22.

L Brands (LB) reported financial results for the second quarter of 2018 after the market closed on August 22.

L Brands is slated to report second-quarter 2018 results after the market closes on Wednesday, August 22.

On July 9, CNBC reported that Jefferies had downgraded Procter & Gamble (PG) to a “hold” from a “buy” and had reduced its target price to $79 from $83.

The consumer cyclical sector has an average dividend yield of 1.4%.

L Brands stock had already fallen ~44% YTD before the earnings release. The fashion retailer is among the biggest apparel losses this year.

L Brands (LB) stock fell more than 5% in the after-hours trading session on May 23. The company missed analysts’ earnings expectations.

On May 10, L Brands (LB) stock slid more than 7% in the stock market. L Brands’ management revised its 1Q18 profit outlook.

Victoria’s Secret owner L Brands (LB) stock is sliding after management revised its 1Q18 profit expectations along with its monthly sales report earlier today.

Management’s guidance for the next quarter topped investors’ concerns. L Brands announced that it expects to earn $0.15–$0.20 per share in 1Q18.

L Brands (LB) reported its 4Q17 financial results on February 28, 2018. The company’s total sales increased 7.4% YoY (year-over-year) to $4.82 billion.

L Brands reported its 4Q17 financial results after the market closed on February 28. L Brands beat analysts’ top and bottom-line expectations.

On January 4, Raymond James upgraded CVS Health (CVS) to “strong buy” from “outperform.” On January 5, Morgan Stanley upgraded it to “overweight.”

Growth strategies L Brands (LB), one of the world’s leading intimate apparel retailers, owns brands Victoria’s Secret, PINK, La Senza, and Bath & Body Works. For some time, the company has been marred by a changing retail landscape. The shift to online shopping has reduced mall traffic, impacting store sales. Moreover, competitive pricing has resulted in […]

L Brands has a dividend yield of 5.5% and YTD price loss of 33.6%.

Moat company Polaris Industries (PII) has been doing well this year, returning ~30.0% year-to-date as of October 23, 2017.

“How Moats Translate into Sustainable Competitive Advantages” is a five-part moat investing education series that explores the primary sources of economic moats.

“How Moats Translate into Sustainable Competitive Advantages” is a five-part moat investing education series that explores the primary sources of economic moats. she

Reasons behind L Brands’ growing yield Specialty fashion retailer L Brands (LB) saw its sales slow between 2013 and 2016. The company recorded revenue growth of 3.5% in 2016, compared with 6% in 2015. The growth was driven by the Victoria’s Secret and Bath & Body Works segments. Whereas its operating income grew 12% in 2015, it […]

On September 1, General Motors (GM) released its August sales report. In August, US retail sales recorded 275,552 vehicles—7.5% higher YoY.

“How Moats Translate into Sustainable Competitive Advantages” is a five-part moat investing education series that explores the primary sources of economic moats. The idea of an economic moat refers to how likely a company is to keep competitors at bay for an extended period. According to Morningstar Equity Research, there are five key attributes that […]

Kao Corporation has become the largest branded and packaged goods company in Japan and the second-largest company in the cosmetics category.

In this series, we’ll discuss how intangible assets can create long-term competitive advantages for companies.

D.R. Horton, one of the largest home construction companies in the US, rose on Friday. Homebuilders rose with D.R. Horton leading the rally.

TransDigm Group (TDG) rose 12% in April. Two other additions, Cerner and Guidewire Software, added to the U.S. Moat Index’s performance in April.

Hanesbrands reported fiscal 3Q16 net sales of $1.8 billion—a rise of 10.7% compared to net sales of $1.6 billion reported in fiscal 3Q15.

Price movement HanesBrands (HBI) fell 5.9% to close at $21.55 per share during the second week of December 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -5.9%, -15.5%, and -25.5%, respectively, as of December 16. HBI is trading 8.1% below its 20-day moving average, 10.8% below its 50-day moving average, and […]

HanesBrands (HBI) reported fiscal 3Q16 net sales of $1.8 billion, a rise of 10.7% over net sales of $1.6 billion in fiscal 3Q15.

Price movement Hanesbrands (HBI) has a market cap of $9.8 billion. It rose 8.3% to close at $25.77 per share on October 28, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 4.4%, 2.4%, and -11.3%, respectively, on the same day. HBI is trading 3.6% above its 20-day moving average, 0.13% below […]

VPMCX counts information technology, healthcare, and industrials as its core invested sectors. These three sectors make up a combined 80% of the portfolio.

The Fidelity Series All-Sector Equity Fund (FSAEX) is quite diversified, and it has no dominant sector.

HanesBrands (HBI) has a market cap of $9.9 billion. It fell by 3.4% to close at $25.65 per share on August 2, 2016.

HanesBrands (HBI) has a market cap of $10.0 billion. It fell by 1.1% to close at $26.55 per share on July 26, 2016.

Vanguard PRIMECAP Fund’s assets were invested across 131 stocks as of June 2016, and it was managing assets worth $44.9 billion as of the end of June.

HanesBrands fell by 0.56% to close at $26.55 per share on July 15. Its weekly, monthly, and YTD price movements were 1.1%, 1.7%, and -9.0%, respectively.

HanesBrands (HBI) has a market cap of $9.5 billion. Its stock fell by 4.5% to close at $25.13 per share on June 30, 2016.

HanesBrands reported fiscal 1Q16 net sales of $1.22 billion—a rise of 0.84% compared to net sales of $1.21 billion in fiscal 1Q15.

The Ivy Global Growth Fund – Class A (IVINX) figures among the bottom two funds in its peer group of 12 for YTD 2016.

FSAEX invests primarily in common stocks of US and foreign issuers. It invests in growth stocks, value stocks, or both.

The growth rate in activewear or athleisurewear has outpaced the overall clothing market, with a double-digit CAGR over the past five years.

HanesBrands rose by 2.8% to close at $27.87 per share on April 7, bringing its weekly, monthly, and YTD price movements to -1.7%, -2.6%, and -4.9%.

Lululemon (LULU) stock rose 10.7% to $67.80 on March 30, 2016, the day the company declared its fourth quarter results. The stock has risen more than 29% year-to-date.

Costco’s membership revenue rose by 3.6% YoY to $603 million in 2Q16, which ended February 14. In constant-currency terms, membership fees were up by 7%.

Wall Street analysts are expecting Gap’s 1Q16 adjusted EPS to decrease by 13% on a YoY basis to $0.49 and the fiscal 2016 adjusted EPS to decrease by 7.0% to $2.27.

Gap (GPS) stock has declined by ̴~17.0% over the last three years as of February 26, 2016.

VF Corporation (VFC) consistently increased its dividends to shareholders. VFC increased its dividends for 43 consecutive years. This isn’t a small feat!

VF Corporation (VFC) expects sales headwinds from its Imagewear, Sportswear, and Contemporary Brand segments to impact its 4Q15 and 2015 results.

Junk bonds have been in the news due to concerns about defaults. They have an iffy repayment ability even if they’re at the higher end of the rating scale.

The consensus analyst recommendation for Gap’s (GPS) stock is a “hold.” As seen in the chart above, 60.5% of the analysts covering the stock have given it a hold.

Gap (GPS) has fallen 37.6% YTD (year-to-date) as of December 29, 2015. Its peers Ross Stores (ROST) and L Brands (LB) have risen 17.7% and 18.2%, respectively.

North America is Nike’s (NKE) largest segment and biggest contributor to profits. The segment saw the highest growth in absolute terms in fiscal 2Q16.

The consumer discretionary sector’s 14-day RSI has been moving toward the 70 mark. It can be expected to cross the mark over the next month.

Lululemon Athletica (LULU) expects to generate sales ranging between $477 million to $482 million in fiscal 3Q16, up from $419 million in the comparable quarter of fiscal 2015.

The Vanguard Consumer Discretionary ETF (VCR) and the Fidelity Consumer Discretionary ETF (FDIS) both rose by 3.3% on a weekly basis, as of November 23.

In fiscal 3Q15, L Brands saw a significant margin expansion both in its gross profit margin and operating margin. The gross profit margin expanded by 80 basis points.

Of the 38 Wall Street analysts covering Gap (GPS) stock, 24 have given it a “hold” recommendation. Nine investment firms have recommended a “sell” for the stock.

Gap (GPS) is expected to release its fiscal 3Q15 earnings on November 19, 2015. Wall Street expects Gap’s adjusted EPS to be around $0.63, a decrease of 15.2% from 3Q14.

The information ratio can be used evaluate the performance of an actively managed fund.

The U.S. Department of Labor released its weekly statistics for initial jobless claims for the week ending November 7, 2015. They stayed the same at 276,000.

After U.S. Department of Labor data released on Friday, November 6, 2015, all eyes should be on the earnings of consumer discretionary sector (XRT).

According to Lipper, net inflows for high-yield bond funds totaled $7.6 billion through October 28, compared to outflows totaling $1.9 billion in September.

High volatility in financial markets ensured low activity in the primary market of high-yield bonds in October. Dollar-denominated high-yield debt amounting to $9.4 billion was issued in October 2015.

First Data (FDC) issued junk bonds worth $3.4 billion last week. The senior notes were rated Caa1/B and carried a coupon of 7.0%.

VF Corporation saw sales of $2.5 billion in 2Q15, up 4.7% year-over-year. Its performance was boosted by top brands The North Face, Timberland, and Vans.

CBL’s top tenants include several big brands, which contributed around 20% of the company’s total revenue in 2014.

Macerich’s centers derived approximately 74% of their total rent for fiscal 2014 from mall stores and freestanding stores under 10,000 square feet.

L Brands (LB) is one of the prominent specialty retailers in the US. It focuses on apparel, personal care, and beauty care products.

In the recent fiscal year, L Brands’ (LB) revenue grew at a rate of 6.32% on a YoY basis. In contrast, the CAGR has been 4.50% over the last four years.

As we discussed in the previous articles of this series, Under Armour (UA) is expecting to significantly grow both its top and bottom lines over the next few years.

A $486.68 million company, Francesca’s Holdings is known for its collection of hand-selected merchandise. It projects an increase of 9%–12% net sales in 2Q15, compared with $95.011 million in sales in 1Q15.

After considerable variation in late August, the SPDR S&P 500 ETF (SPY) experienced fewer fluctuations on Thursday, September 3.

Lululemon Athletica (LULU) reported a 5.2% rise in gross profit to $205.9 million in 1Q16. The increase in profits was driven by higher sales.

Lululemon Athletica (LULU), which declares its 2Q16 results on September 10, is expecting sales in the range of $440 million to $445 million in the quarter.

The Bloomberg Consumer Comfort Index is a future-looking index that gives Wall Street an idea about how confident consumers are in regards to the future of the economy.

Retail and e-commerce sales—DTC or direct-to-consumer sales—are growing at a faster clip than the average growth rate for the company.

The women and young athletes demographic segments saw the greatest sales traction in fiscal 2015 for Nike.

Google and Levi Strauss unveiled a new collaboration. It embeds touch-enabled interactive technology in fabrics. It may revive the denim industry.

The beauty of athleisurewear is that it’s multifunctional. It’s used not only for workouts but also for a wide range of social occasions