...Dominant Market Positions: L Brands, Inc. is the dominant player in intimate apparel and a major player in personal care and beauty products through its two main brands, Victoria's Secret and Bath & Body Works. The company's track record of consistent growth demonstrates its strong customer loyalty and ability to introduce compelling, unique merchandise despite challenges across the mid-tier mall retail space. Margin stability demonstrates the company's pricing power and ability to drive traffic without markdowns. Solid Financial Performance: L Brands' strong top-line growth is driven by robust comparable store sales (comps), which averaged 5% over the five years through 2015. Beyond the modestly negative impact of L Brands' decision to eliminate swimwear and other apparel categories (4% of total sales) at Victoria's Secret in 2016/2017, Fitch Ratings expects sustainable comps growth in the 2%¡3% range, with EBITDA margins at approximately 20%¡ 22% over the next three years, consistent...
