Plans to end the Victoria’s Secret catalog and phase out of the swim and apparel categories have left analysts feeling bearish about parent company L Brands Inc. in the short term, but many see benefits in the long run.

L Brands LB, -0.52% first discussed the planned reorganization in April, saying the company would create three units to streamline the business: Victoria’s Secret Lingerie, Pink and Victoria’s Secret Beauty.

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The company reiterated the need to focus on its core categories — bras, panties and beauty — in its quarterly earnings call on Thursday. To do so, there will be a number of changes, including the end of the catalog. The company is also discontinuing its sale of swimwear and nonathletic apparel, like T-shirts and sweaters, though executives were clear that it will continue selling athletic apparel, which is the clothing trend of the moment.

We “came to a conclusion that the swim business was not one of those core categories, that it had been a flattish business for the last several years,” said Stuart Burgdoerfer, chief financial officer, according to a FactSet transcript.

The changes will “put some pressure on the business,” Burgdoerfer said, but “we have some expense savings that we’ve actioned as well, including the elimination of the catalog spend and a meaningful reduction in our home-office overhead, which, in part, offset the sales and profit pressure from the category exits and the impact of the promotional changes that we’re implementing.”

L Brands reported sales of $2.61 billion for the first quarter, meeting the FactSet consensus. Same-store sales increased 3%; same-store sales for Victoria’s Secret increased 2%. But the company lowered its full-year earnings per share guidance to between $3.60 and $3.80 from between $3.90 and $4.10.

The eliminated categories accounted for about $525 million in sales in 2015, most of it in swim, said Burgdoerfer.

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Shares of the company’s stock are up 5.6% in Friday trading, but down 33% for the year so far.

Stifel analysts believe the changes are not only the right call, but come at the right moment to take advantage of the “white hot” Victoria’s Secret and Bath & Body Works brands.

“Now is the time to capitalize on the brand strength, reduce promotional activities and build a business based on marketing that is modern and 21st century, based on electronic media, not snail mail and expensive catalogs,” bank analysts wrote in a Thursday note.

Stifel acknowledges that there will be sales and earnings pressure in the near-term, but they see long-term benefits.

“The lost sales from swim and apparel will be replaced by higher margin, compelling merchandise that is more consistent with the Victoria’s Secret brand,” the bank said.

Stifel rates L Brands stock buy, but lowered its price target to $75 from $90.

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Analysts at Cowen & Co. said they like the changes being implemented and “believe their proactive steps in focusing their efforts will likely yield long-term sustainability of between 5% and 15% revenue growth and operating margin in the high teens.”

The bank also cites, in a Thursday note, management tests of the catalog elimination conducted in 2015, which yielded “little to no impact on sales.”

Cowen rates L Brands stock outperform, though it also lowered its share-price target to $70 from $81.

In contrast, analysts at Wedbush are less enthusiastic.

“We generally view LB’s strategic plans favorably – particularly eliminating the cost of the catalogue and reducing promotional activity at Victoria’s Secret,” wrote Wedbush analysts in a Friday note. “If the overall Victoria’s Secret business was performing in line with historical growth patterns, we would likely be inclined to look past the near-term impact and focus on the company’s long-term growth. But we believe the current challenges at Victoria’s Secret place the company’s valuation at longer-term risk.”

The bank rates L Brands stock neutral with a price target of $65.

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