A woman walks past a Victoria's Secret store at Huaihai Road in Shanghai, China. VCG | Getty Images

It's been quite the year for L Brands. Sales continued to decline at its prized Victoria's Secret stores. It faced an activist campaign that led to a board shakeup. Then came unwanted attention for its ties to accused child sex trafficker Jeffrey Epstein. That relationship is under review by the company. But this week the focus will be on longtime Chairman and CEO Les Wexner at the company's investor day. Wexner, along with a number of L Brands executives, including its heads of Bath & Body Works, Pink and Victoria's Secret will take the stage Tuesday at the Hilton Columbus at Easton to give an update on the state of the company's business. Shares of L Brands are down nearly 35% since the start of the year. Over the past three years, its shares have fallen cumulatively nearly 40%, while shares of the S&P 500 have grown nearly 11%, according to Factset. Last quarter, the company reported same-store sales that fell 1%, worse than expected growth of 0.3%. Its marquee store, Victoria's Secret, has lost touch with women who are eschewing its sexy lacy brand for more comfortable styles. Its Bath & Body Works store has helped drive the company's growth, but there are some concerns that engine may slow. Bath & Body Works now comprises 35% of L Brands' sales, up from 27% five years ago, according to Factset.

Turnaround plans

L Brands is making efforts to revive Victoria's Secret's performance. It is closing 53 Victoria's Secret stores, and replacing the brand's marketing chief after a decades-long stint, along with the heads of Victoria's Secret and its younger Pink brand. L Brands has said it is "rethinking" its annual Victoria's Secret fashion show. The annual event has drawn fewer viewers in recent years to watch its "Angels" strut down the catwalk. Wexner has said network television is no longer the "right fit" for the event, and some have suggested the company may opt to stream the event instead. It's also looking to improve its Victoria's Secret's merchandise, differentiating more clearly between its cheaper youth-focused line Pink, and more adult Victoria's Secret, as well as moderate discounts across the board. In March, it reentered the swimsuit category after pulling out of the business in 2016. The move cost it $500 million in annual sales. "Time will tell whether or not this strategy will be successful, but this will be the new leadership's opportunity to make the case that this will work when past attempts have not," wrote Jamie Merriman at Bernstein. Its Bath & Body Works chain, meantime has been performing stronger, despite challenges facing mall-based retailers. But some analysts, including those at Jefferies, worry what challenges lie ahead for the brand as sales of highly profitable candles slow and margins fall. "A declining Bath & Body Works scenario is not contemplated at all by the Street so beware," the firm's analysts recently cautioned investors. The company has told investors to expect 2019 full-year adjusted expecting earnings per share in a range of $2.30 to $2.60.

Board in the spotlight