NEW YORK (TheStreet) -- Shares of L Brands Inc. (LB) are up 1.63% to $64.73 in mid-afternoon trading on Thursday, after the company reported a 9% increase in net sales to $765.3 million for the month of August.
Net sales for August 2013 were $704.7 million.
Comparable store sales for August grew 5% compared to last August.
Analysts polled by Thomson Reuters expected a 2.7% rise in store sales.
Wharton School marketing professor David Bell tells TheStreet's Brittany Umar retailers should rely less on discounts and sales for growth:
The apparel retailer, which operates the Victoria's Secret and Bath & Body Works brands, reported a 6% rise in net sales for the 30 weeks ended August 30, 2014 to $5.83 billion, from $5.48 billion for the 30 weeks ended August 30, 2013.
Comparable store sales increased 3% for the 30 weeks ended August 30, 2014.
TheStreet Ratings team rates L BRANDS INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate L BRANDS INC (LB) a HOLD. The primary factors that have impacted our 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 revenue growth, growth in earnings per share and increase in net income. However, as a counter to these strengths, we find that the company's profit margins have been poor overall."