L Brands Inc 's February sales and first-quarter 2017 guidance came in significantly below expectations. The tough start to the first quarter “adds additional uncertainty to LB story,” Wedbush’s Morry Brown said in a report. He maintained a Neutral rating on the company, while reducing the price target from $60 to $47.
Following the disappointing sales and guidance, there seem to be “more questions than answers” for L Brands in the near term, Brown commented. He wrote, “Both the VS [Victoria’s Secret] and BBW [Bath & Body Works] divisions have shown resilience to erratic mall traffic patterns in previous years, but current trends suggest less insulation.”