Earlier today I discussed how Columbus Ohio mall REIT Washington Prime declared Chapter 11. But another iconic Columbus Ohio mall retailer, L Brands (formerly Limited Stores) has adapted to the on-line world and the Covid epidemic.
Limited Stores used to be a shopping mall cornerstone with store brands like Limited, Limited Express, Limited Too, Henri Bendel, Abercrombie and Fitch, Galyans Sporting Goods, Victoria’s Secret, and Bath and Body Works. As Amazon’s online shopping approach took hold (orange line), Limited Stores rebranded themselves as L Brand, shut down Limited Stores in Malls and sold the remaining viable stores except for Victoria’s Secret (once featured in an episode of TV show The Office) and Bath and Body works. They primarily see through on-line store front. L Brands also has Pink, a women’s casual clothing store.
L-Brands has successfully weathered the Amazon (online shopping) storm as well as Covid. L Brands is seeing a rapid rise in EPS as the economy starts to grow after economic lockdowns nearly destroyed shopping malls.
This chart shows the L Brand earnings recovery and corresponding stock price.
Well done L Brands!
L Brands should be glad that NY Times ranter Paul Krugman didn’t oversee their operations.