By Dhirendra Tripathi
Investing.com – L Brands (NYSE:LB) fell almost 3% Tuesday after the company decided to hive off its intimates and beauty products business, Victoria's Secret, into a separate entity.
A sale of the business was among the several options L Brands had considered before deciding on a spin-off.
The retail business of bath, body and home fragrance will be housed under a different company, Bath & Body Works.
L Brands held talks with several potential buyers while reviewing its lingerie line, but concluded that a spin-off offered more value.
Victoria's Secret expects to be valued between $5 billion and $7 billion in a spinoff to L Brands shareholders, the New York Times reported.
According to Reuters, L Brands expects sales for the first quarter ended May 1 to be $3.02 billion, up from $1.65 billion a year earlier, with revenue growth across both brands.