What happened Shares of L Brands (NYSE: LB), the parent of Victoria's Secret and Bath & Body Works, skyrocketed last month as investors cheered the business update and cost-cutting plan it announced at the end of the month as well as its decision to continue pursuing a separation of Victoria's Secret and Bath & Body Works. Earlier in July, the stock steadily gained as it bounced back from the depths of the market crash. According to data from S&P Global Market Intelligence, the stock finished the month up 63%. The chart below tells the tale. ^SPX data by YCharts. So what The big news of the month came on July 29 when the company announced that it was cutting $400 million in annual expenses by reducing its corporate headcount by 15% (or 850 people), better managing inventory, closing 250 Victoria Secret stores, and cutting operating losses in foreign markets like the U.K. and China. Image source: Getty Images. Additionally, the company reported strong sales at Bath & Body Works, where it expected a sales increase of 10% from a year ago, though companywide, it still projected a 20% decline in sales due to an estimated 40% drop at Victoria's Secret. Still, that and the company's commitment to separating Victoria's Secret encouraged investors who see Bath & Body Works as a strong stand-alone business. CEO Andrew Meslow said, "The Board and management remain committed to separating the Bath & Body Works and Victoria's Secret businesses, as well as improving the profitability of the Victoria's Secret business." Now what Several analysts lifted their price targets on L Brands after the update, and J.P. Morgan upgraded it to overweight. But Citigroup downgraded it to sell. While the Victoria's Secret brand is still troubled, L Brands trades at a significant discount to where it was a few years ago, giving investors hope that the retail stock has further upside. The company's second-quarter earnings report is expected next week. Analysts are forecasting revenue to drop 23.7% to $2.21 billion, and a loss of $0.43 per share on the bottom line, versus a profit of $0.24 in the year-ago quarter. 10 stocks we like better than L BrandsWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and L Brands wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of August 1, 2020 Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source