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Why is L Brands (LB) Stock Down Today?

On Friday, shares of retailer L Brands Inc LB are down around 3.5% in morning trading after the company announced yesterday plans to restructure its Victoria’s Secret brand, March 2016 results, and the cutting of 200 jobs.

LB’s changes to its Victoria’s Secret division were implemented in order to increase focus on the brand’s central product categories and to streamline operations. Victoria’s Secret will be split into three separate business units: Victoria’s Secret Lingerie, Victoria’s Secret Beauty, and PINK. L Brands plans to concentrate on areas it feels there is the most potential for growth.

This restructuring, however, will result in the elimination of roughly 200 jobs in the company’s Columbus, Ohio and New York City office locations.

L Brands also reported that net sales increased by 5% to $1.03 billion this past March in comparison to the period a year ago. Comparable store sales for the five-week period ended April 2 grew 3% on a year-over-year basis; these ales were negatively impacted by the early Easter holiday by one to two points.

"Coming off a record year, now is the best time to make improvements ... going from best to even better," company CEO Leslie H. Wexner said. "We are making these changes to accelerate our growth and to strengthen the business for the long term by narrowing our focus and simplifying our operating model."

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