Lazard Capital Markets analyst Todd Slater was optimistic on Columbus, Ohio-based Limited Brands Inc. partly on fewer promotions and well-managed inventory. The company's Victoria's Secret brand is seeing strong sales of both fashion bras and its new Biofit bra, he said, and efforts to turn its Pink label into a stand-alone store are doing well.
"Pink is clearly becoming a destination shop, boasting relatively high traffic and conversion rates that exceed those of its sister brands as well as the rest of the mall," Slater wrote in an analyst note.
Shares of Limited Brands added 66 cents, or 4.2 percent, to $16.43 in afternoon trading. The stock has traded between $14.41 and $29.58 over the past year.
The analyst was more cautious on San Francisco-based Gap Inc., saying the retailer may benefit from new products but is still faced with increased markdowns and uninspired window and floor displays.
Gap's stock gained 58 cents, or 3 percent, to $20.26. The stock has traded in a 52-week range of $15.20 to $22.02.
Elsewhere in the sector, share of Jackson, Wyo.-based American Apparel Inc. added 50 cents, or 5.6 percent, to $9.45., while Aeropostale Inc.'s stock climbed 65 cents, or 2.6 percent, to $26.05.
