The Buckle, Inc. (BKE), Costco Wholesale Corporation (COST), Limited Brands, Inc. (LTD): Good Retail News Comes in Threes

Limited Brands, Inc. (NYSE:LTD) starts to look healthier
I almost wrote “healthy” instead of “healthier,” but I think that’s a bit preemptive. The company managed to put up some good numbers in May with comparable sales up 3%, but Wall Street was looking for a bit more. That doesn’t mean it was a bad result, though. All of the company’s main brands had an increase in comparable sales, which highlights the work that management has done recently.

Through much of last year, Limited Brands, Inc. (NYSE:LTD) was struggling with La Senza, its Canadian lingerie company. It instituted a cleansing program, shutting down underperforming stores to get the brand back in line. In May, La Senza boasted a 4% increase in comparable sales, which is a huge leap from a year ago, when comps fell 3%.

Victoria’s Secret and Bath & Body Works also had increases in May, but both fell short of the kind of numbers they were putting up in 2012. On the brighter side, Victoria’s Secret direct, which had been lagging in 2013, increased comparable sales by 4%, though it’s still down 4% year to date.

While I like the turnaround, I’d look for another solid month before counting my eggs. While it’s not an expensive stock, the company isn’t “cheap” either. For now, I’m sticking with The Buckle, Inc. (NYSE:BKE) and Costco Wholesale Corporation (NASDAQ:COST).

The article Good Retail News Comes in Threes originally appeared on Fool.com.

Fool contributor Andrew Marder owns shares of The Buckle. The Motley Fool recommends Costco Wholesale (NASDAQ:COST) and The Buckle. The Motley Fool owns shares of Costco Wholesale and The Buckle.

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