Investors Aren't Cheering L Brands' Sale of Victoria's Secret: Here's Why
The suspense is over. After months of speculation, L Brands (NYSE: LB) announced a deal for its embattled lingerie brand, Victoria's Secret, to private equity firm Sycamore Partners. And Les Wexner is stepping down as chairman and CEO of the company.
The market response has been muted. Many investors anticipated such a turn of events, and L Brands stock was already up 35% year to date. Following the announcement, shares traded down 5%. Though the risks linked to reviving Victoria's Secret have been reduced, not to mention the cash proceeds from the deal that will go to paying down debt, major hurdles remain for the company.
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