Wunderlich: L Brands 'Trumps Black Friday Woes,' Momentum To Continue

reported on Thursday total November comps rose eight percent from a year ago, driven by strong performances at Victoria Secret, PINK and Bath & Body Works. Danielle McCoy commented in a note on Thursday that L Brands focused on gifting, strong product collections, powerful promotions and Holiday décor that put consumers in the right Holiday mood. McCoy notes that the company had tighter inventories and adjusted promotional cadence, leading to higher merchandise margins. The analyst adds that momentum is expected to continue throughout the Holiday as the company is expected to achieve or even beat management's December comps guidance in the low-single-digit range. McCoy concludes by noting that the company has portfolio of powerful brands that justify higher selling prices and shares are trading at a discount valuation that is unwarranted. “As confidence builds in the power of the brand and international becomes a more meaningful piece of the pie, we expect L Brands to be awarded a higher multiple,” McCroy wrote. Shares are Buy rated with a $90 price target.