S&P lowers L Brands

S&P said it lowered L Brands Inc. to BB- from BB and cut the company’s other ratings by one notch.

“We expect performance at Victoria’s Secret (VS) to remain under pressure through fiscal 2020 as the company works to improve merchandise and attract customers back to stores. We view the third quarter results at VS as further acceleration of a downward revenue trend, with a comparable sales decline of 7%, following declines of 5% and 6% in the first and second quarter,” said S&P in a press release.

S&P believes shoppers are leaving Victoria’s Secret for retailers with cheaper prices, a greater selection of sizes and marketing campaigns focused on diversity and inclusivity.

The outlook is stable.

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