I added more to my position in L Brands Inc (LB) today at $41.65/share taking advantage of the continued price drop due to today’s report of the decreasing sales in July compared to last year which was mostly expected due again to the discontinued swimwear and apparel business and other transitional reasons.
The company stated that it expects to report second quarter earnings per share at the high end of its previous guidance range of $0.40 to $0.45 per share.
L Brands strong brands, position in the markets they serve and international expansion prospects, particularly in China, make the company a good opportunity at this time.
In the meantime, the stock provides a strong dividend of 5.75% as of now.
Since I already have a good size position, I may sell some shares if the price should pop in the near term.