Has L Brands Finally Become an Undervalued Dividend Stock?
L Brands (NYSE: LB) lost roughly half its market value this year as an ongoing slowdown at Victoria's Secret offset its stronger growth at Bath & Body Works. A dividend cut, an activist investor battle, controversial comments about transgender models, and headlines about Jeffrey Epstein's connections to Victoria's Secret all exacerbated that pain.
Yet L Brands' stock recently rose after it posted its third-quarter earnings, even though its growth still looked anemic. Its revenue dipped 3.5% annually to $2.68 billion, missing estimates by $10 million. Its non-GAAP net income plunged 87% to $5.7 million, or $0.02 per share, but still met Wall Street's expectations.
Image source: Victoria's Secret.
Source Fool.com
