New bra launches should help stabilize Victoria’s Secret sales, says BofA

BofA analyst Lorraine Hutchinson thinks the combo launch of two new bra styles at Victoria’s Secret, which were the first large-scale launches this year, will stabilize sales trends, though also notes that the company delayed its Spring bra launch to make sure it was more seasonally appropriate, creating sales weakness earlier in Q1. The firm expects these launches to be incremental to April sales and with some benefit in May in Q2. Given where the stock is trading, the firm thinks expectations are low and "any improvement in revenues will lead to upside to the stock," on which BofA has a Buy rating and $50 price target.