Wunderlich: Muted Promotions Benefit L Brands' Holiday

L Brands Inc's (NYSE: LB) relatively rosy holiday results benefited from well-managed promotions and a strong product assortment, an analyst said Thursday.

Earlier, the owner of Victoria's Secret and Bath & Body Works posted a 4 percent increase in same-store sales for the five weeks ended January 3, while net sales increased 5 percent to $2.2 billion.

L Brands changed hands recently at $86.74, down 0.34 percent.

Wunderlich's Danielle McCoy maintained a Buy rating and expects the company's the semi-annual sale and a start for Valentine's Day sales will help power results through January.

"We note bras are '25 Percent Off' this year vs. '25 Percent-40 Percent Off' last year," McCoy said, adding that the more restrained promotion may result greater top-line and margin gains.

"Inventories are in solid shape to start Spring," according to McCoy, whose $90 target is under review.