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L Brands (NYSE: LB) | Company Profile, History, Competitors

 

L Brands, Inc. (NYSE: LB) is a specialty retailer for women's intimate apparel, personal care, beauty and home fragrance with over 3,000 stores worldwide. L Brands is known for their two main brands Victoria's Secret and Bath & Body Works. The company was founded in 1963 and headquartered in Columbus, OH.

Limited Brands was founded in 1963 by Leslie Wexner. The first store was in Upper Arlington, OH. In 1982, the company acquired the Victoria Secret brand. In the 1990s, the company developed Bath & Body Works and the Victoria Secret fragrance brand. In 2013, the company's name was changed to L Brands, Inc. from Limited Brands.

Business Segments

L Brands operates in three main segments:
  • Victoria's Secret (59% of 2018 Revenues): Leading brand of women's intimate and apparel. Products sold at over 1,400 stores in US, Canada, UK and internationally.
  • Bath & Body Works (33% of 2018 Revenues): Sells personal care, soaps, sanitizers and home fragrance products. Products sold at over 1,700 stores in US, Canada and internationally.
  • Other (8% of 2018 Revenues): Consists of La Senza, specialty retailer of intimate apparel, and Henri Bendel, a handbag brand.

Victoria's Secret Segment

Victoria's Secret is the market leader in women's intimates category in the US. The typical store size is 6,000-6,500 square feet. Their sub-brand PINK is the leading specialty collegiate brand in the US. The typical store size is 3,000-4,000 square feet.

Victoria's Secret also operates an e-commerce business and fragrance business, but the intimates category is its core.

The primary competition for Victoria's Secret are intimate brands from HanesBrands, Bali, Playtex, Calvin Klein and Olga.

Bath & Body Works Segment

Bath & Body Works is one of the largest retailers of personal care, home care and beauty products. It has the number 1 market share in the US for fragrant body care, home fragrance and soaps/sanitizers. The typical store size is under 2,500 square feet.

Other Segment

The company owns La Senza, a Canadian specialty retailer of women’s intimate apparel. La Senza has been positioned as complementary to the Victoria's Secret and Pink lingerie portfolio in the U.S.

The company also owns Henri Bendel, a NY upscale specialty retailer of women’s handbags, jewelry, and other accessory products. Henri Bendel was acquired in 185 and L Brands has been transitioning to an luxury handbags and accessories concept.

Sourcing

The company uses sourcing agent Mast Global to source products in the US and Asia. L Brands purchased merchandise from over 400 suppliers around the world, with no supplier providing more than 10% of total purchases.

History

The company was founded in 1963 by Leslie Wexner. He opened their first store in Upper Arlington, OH called "The Limited" which was aimed at clothing for younger women. In 1982, the company acquired the Victoria's Secret brand and catalogue. In 1985, the company acquired the Henri Bendel store in New York City.

In the 1990s, the company developed Bath & Body Works and the Victoria's Secret fragrance brand. In 2004, the company launched the Victoria's Secret PINK collection.

In 2013, the company's name was changed to L Brands, Inc. from Limited Brands, Inc.

Management*

Leslie H. Wexner (CEO): Leslie Wexner serves as CEO and founder since 1963.

Stuart B. Burgdoerfer (CFO): Stuart Burgdoerfer serves as CFO since 2007. Prior, he served in various roles at the company including Controller and VP Financial Planning. He had also worked as an auditor at Deloitte & Touche LLP.

Financials

 $ USD in millions FY 1/31  2013     2014  2015  2016  2017  2018
 Revenues $10,459  $10,773  $11,454  $12,154  $12,574  $12,632 
 Gross Profit $4,413  $4,429  $4,808  $5,204  $5,125  $4,959 
 Operating Profit $1,573  $1,743  $1,953  $2,192  $2,003  $1,728 
 Net Income $753  $903  $1,042  $1,253  $1,158  $983 
 EPS $2.60  $3.12  $3.57  $4.30  $4.04  $3.46