What's going on?

L Brands� second-quarter profit beat expectations late on Wednesday � but investors had nothing sweet to whisper about flagship brand Victoria�s Secret, and the company�s shares dropped 7% on Thursday.

What does this mean?

Fashionista L Brands� sales fell short of investors� expectations last quarter, but its profit was higher than predicted, thanks in part to a squeaky clean performance from Bath & Body Works (another of its brands). Investors, though, couldn�t take their eyes off Victoria�s Secret: it represents over half of L Brands’ revenue, even though its sales shrank last quarter. But it seems there�s nothing less attractive to an investor than a brand�s profit falling 86% from the same time last year � with cut-price unsold items partly to blame.

Why should I care?

For markets: New trends are all the rage.

Victoria�s Secret�s misfortunes can partly be explained by shifting consumer tastes, but its challenges aren�t insurmountable, as sportswear brand Lululemon proved last year. The brand canceled its catwalk show this year and now plans to make the brand more inclusive. Until then, investors might favor �everyman� brand Dick�s Sporting Goods, whose shares hustled 4% after a stronger-than-expected update on Thursday. And investors in struggling brand Gap will hope for a similar look when they try its earnings on for size.

The bigger picture: Does this store have an ecommerce section?

Department store chain Nordstrom reported a higher-than-expected profit, and investors sent its stock up 15% on Thursday. Although the company lowered its 2019 earnings forecast, investors might�ve been encouraged by its inventory management, which means it�s less likely to aggressively discount to clear stock (� la rival Macy�s). But they may still be wary: US department store sales are expected to lose customers to ecommerce and decline by over 20% this year. The US services sector, meanwhile, grew in August � even as its manufacturing activity shrank for the first time in a decade (tweet this) � suggesting the spending trend will continue this quarter.