Shares of L Brands (NYSE:LB) rose over 6% in morning trading Thursday after the owner of Victoria's Secret and Bath & Body Works reported better than expected second-quarter earnings.
L Brands has been wracked by both the coronavirus pandemic and its attempt to shed the ailing lingerie brand, which continued to perform poorly in the latest period. Yet the Bath & Body Works personal-care retailer more than offset the Victoria's Secret decline, posting comparable-stores sales that surged 87% from the year-ago period for the time its stores were open in the quarter.
The performance revived the belief that once L Brands spins off the anchor that is Victoria's Secret, it will be a more robust business. Analysts who had hiked their price targets on the company three weeks ago after it revealed a cost-savings plan have increased them once again.
Where the ceiling for L Brands stock was previously set at a high of $27 a share, it has been raised once again. Now Wall Street targets share prices anywhere between $33 and $40, a sizable step up from the $30 L Brands currently trades at.