At $27.71, L Brands, Inc. (LB) is fairly priced and a NO-BUY. Victoria’s Secret, LB’s flagship retail brand, is past its prime. LB’s body-care retail segment, Bath & Body Works, will maintain its high profitability and will grow at the same rate as the industry.

We have come a long way with Hibbett Sports HIBB since Jan 2016 ($30). My initial thesis asserted an intrinsic value of $43 - stressing on a over-reaction to short-term pessimism about the retail industry. I put great faith in HIBB's operational excellence, its superior ROIC track record, and its clustering small-box store expansion strategy. Most worryingly, I pegged Dick's Sporting Goods DKS as HIBB's most formidable threat and gave only a passing mention to Amazon, Inc AMZN.

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Thesis: HIBB’s glory days are over. Despite the cutthroat nature of retail, HIBB managed impressive performance on the merit of a sound location strategy and airtight operations. HIBB’s small-box-in-small-town strategy managed to expand ROICs from 14% to 21% from ’08 to ’15. But the lack of a durable moat, the secular e-commerce shift, and an ongoing retail crisis have initiated the beginning of Hibbett’s slow-decline. Despite this, several weak quarters and guidance shortfalls have led Mr. Market to overstate the bad news.