For a company renowned for its solid execution and consistent sales growth, the past two holidays have been a little less than merry for Victoria's Secret and its parent company, L Brands.
In 2012, the lingerie label left money on the table when it failed to be aggressive enough on promotions, and when its inventory fell short in key categories such as sleepwear. Last year, the company admitted that it "didn't execute as well as we should have"—a result of product misses in apparel, and a need to ramp up promotions late in the season.
But ahead of the premiere of Victoria's Secret's annual fashion show Tuesday, and with the 2014 holiday season in high gear, analysts said they are confident that L Brands will ride the momentum of its third-quarter earnings beat—as well as a robust 8 percent same-store sales gain in November—through the fourth quarter.
It's accomplished these gains despite revenue in the broader intimates market dropping 3 percent in the year ended October, to $11.1 billion, according to the NPD Group.