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7 Consumer Stocks Primed For Growth: L Brands (LB)
Speaking of sweet and yield, L Brands (LB) — owner of upscale brands Bath & Body Works, Victoria’s Secret, PINK, La Senza, Henri Bendel — also has a nice 2.3% yield.
The most iconic of its brands is of course Victoria’s Secret, which is a marketing machine. From its annual star-packed televised fashion show that complements the Super Bowl to its provocative ads, its visibility is broad.
And with its PINK stores, it’s now able to gain access to a younger audience and move them through the entire brand group. PINK is for younger teens and Millennials that are looking for a hip fashion statement without a premium price.
In recent quarters LB’s Bath & Body Works has been the most successful segment with comparable sales up 6% last quarter. June same-store sales were up 3%.
Margins rose across the brands and inventory per square foot was down in it stores.
As consumers have more money in their pockets, they’ll be looking to splurge or simply buy more premium products. LB is in prime position to capitalize and this sector will be leveraged to a stronger economy. And right now it’s well priced given its growth potential — and its nice dividend.
Source: Investor Place