L Brands' (LB) Jan. Sale Hampered by Timing Shift; Stifel Affirms at 'Hold'

Stifel reaffirmed its Hold rating on L Brands (NYSE: LB) following a January sales miss, but a profit guidance hike.

Analyst Richard Jaffe noted that January comps fell 2 percent, which was below L Brand's guidance of a low-single digit increase and consensus, which was at positive 2.2 percent. January sales results were negatively impacted by a timing shift in the Victoria’s Secret semi-annual sale event into December. Excluding the negative impact of this timing shift, total company comps would have increased 1% in January. Merchandise margins were down to LY, in-line with management’s expectations, driven by a VS sport promotion and FX pressures, the analyst noted.

Jaffe reiterates his Hold rating on L Brands due to valuation as the stock is trading "well above the two-year average of its out-year P/E multiple."

For an analyst ratings summary and ratings history on L Brands click here. For more ratings news on L Brands click here.

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