Why L Brands' Stock Is Up Sharply Today
Shares of retail-chain operator L Brands (NYSE: LB) were sharply higher on Thursday, after the company reported a wider-than-expected first-quarter loss and said that it will follow through on separating its troubled Victoria's Secret chain into a stand-alone company.
As of 12:15 p.m. EDT, L Brands' shares were trading up about 16.2% from Wednesday's closing price.
Consumer-discretionary investors were bidding up L Brands' shares on Thursday after the company said during its quarterly earnings call that it will go forward with its plan to separate its Bath & Body Works and Victoria's Secret chains into separate companies. A planned sale of Victoria's Secret to a private-equity company fell through earlier this month; the sale had been well-received by investors concerned about ongoing losses at the lingerie chain.
Source Fool.com
