LB/Batman - You're right, they are not instilling any confidence, down to $28.50 now. I don't think there's much they can do or say though as they are still transitioning and a new CEO is coming in for Pink, and they don't want to step on her plans. The outgoing CEO made some really crappy statements too - I get the impression she's not leaving by choice. Victoria's Secret is 2/3 of the business and Body Works 1/3 so I'm sure there's always been a rivalry and, essentially, they are replacing Denise with Amy BECAUSE Amy was putting up better numbers in her, smaller division.
FNSR/Albo - Up 7% now, hopefully some other joker can downgrade them!
LB/Batman - Analyst day? Hopefully they can stay out of the spotlight for a Q or two and simply hit their numbers without any more "adjustments". Sales were there so the bulk of the problems are internal yet people are trading off the narrative that Victoria Secret is no longer a thing. I'll tell you that Pink is very much THE thing for young teens and the women I know still buy Victoria Secret stuff, despite the "Me Too" movement. For some reason, they want to be empowered but not if they have to wear these.
Founded in 1977, Victoria’s Secret has long been the leader in the women’s lingerie market, with $1.1 billion in revenues in 2015. IBISWorld analysts put Victoria’s Secret share of the entire lingerie market at 61.8%.
So it's hard for them to grow share from there yet, somehow, revenues do keep rising, though slowly:
| Year End 03rd Feb | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | TTM | 2019E | 2020E | CAGR / Avg | |
| $m | 10,459 | 10,773 | 11,454 | 12,154 | 12,574 | 12,632 | 12,822 | 13,081 | 13,470 | +3.8% | |
| $m | 1,573 | 1,743 | 1,953 | 2,192 | 2,003 | 1,728 | 1,674 | +1.9% | |||
| $m | 753 | 903 | 1,042 | 1,253 | 1,158 | 983 | 937 | 769.4 | 783.4 | +5.5% | |
| $ | 2.54 | 3.05 | 3.50 | 4.22 | 3.98 | 3.11 | 2.97 | +4.2% | |||
| $ | 2.81 | 3.05 | 3.50 | 4.22 | 3.98 | 3.11 | 2.97 | 2.77 | 2.85 | +2.1% | |
| % | -7.2 | +8.7 | +14.7 | +20.5 | -5.7 | -21.9 | -21.5 | -11.0 | +3.01 | ||
| x | 10.5 | 10.9 | 11.7 | 11.4 | |||||||
| x | n/a | n/a | 3.91 | 4.36 | |||||||
| Profitability | |||||||||||
That's why they don't have and don't deserve a 20x multiple (or 40x the way this market is) but 12x $3 is $36 so, assuming now growth and a little bit of efficiency, they are ridiculously undervalued.
