The stock for L Brands Inc (NYSE:LB) was up 4.77% at the bottom of the noon hour on September 26. The stock has risen almost 10% in the past 5 trading days. This is after a tumultuous 2017 that has seen the share price decline 34.9% and drop 41% year over year.
L Brands Inc is an American fashion retailer with acquisitions such as Victoria’s Secret, Lane Bryant, Abercrombie & Fitch, among others. Like many fashion retailers it has struggled in recent years with store closures and the rise of e-commerce. The company released its second quarter results on August 16.
Second quarter operating income has down to $300.9 million from $408.2 million in Q2 2016. Adjusted earnings per share decreased 31% to $0.48 per share compared to $0.70 per share the previous year. L Brands also posted a comparable sales decline of 8%. L Brands is investing in store remodels, which has analysts worry that the company is not able to sufficiently combat the decline of traditional retail.
The recent boost suggests some optimism from investors regarding L Brands chains. Victoria’s Secret and Bath and Body Works chains have seen an increase in same-store sales in recent years but year-over-year growth remains low. The stock does offer a dividend of $0.60 per share representing a 5.6% dividend yield. So, for investors who are willing to bet on a comeback for L Brands its attractive dividend yield can also provide income for portfolios.
