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NEW YORK (TheStreet) -- L Brands (LB) - Get L Brands, Inc. Report stock is down by 3.40% to $81.29 in late morning trading on Friday, after the apparel company announced it is restructuring its Victoria's Secret brand.  

L Brands announced on Thursday that it will eliminate certain merchandise categories and cut about 200 jobs at its offices in Columbus and New York.

Additionally, the company announced it will restructure the brand into three business units, which include Victoria's Secret Lingerie, PINK and Victoria's Secret Beauty.

It's unclear how the changes will impact the company's profits, MKM Partners said in a note today. The firm maintained its "buy" rating on the stock. 

"We believe restructuring will improve the sales and margin profile of LB long-term by focusing on more productive, higher margin categories, and supported by more effective marketing," MKM said. "However, we expect the transition in the marketing strategy away from couponing, could lead to volatility in sales trends in a year when comps are more critical to driving upside." 

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TheStreet Recommends

Separately, TheStreet Ratings has set a "hold" rating and a score of C+ on L Brands stock. The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.

The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and expanding profit margins. However, as a counter to these strengths, TheStreet Ratings finds that the stock has had a generally disappointing performance in the past year.

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: LB

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