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Takeaway: Hedgeye's Brian McGough thinks Victoria Secret's "free shipping" offer is a continuation of a trend that will plague the rest of retail.

Victoria's Secret (LB) has used the Free Shipping offer as an offensive weapon in the past (they were one of the first to do so, actually), but this is a continuation of a trend that we think will ultimately plague the rest of retail.

A Quick Thought on Victoria's Secret "Free Shipping" | $LB - vs3

While LB is a high-end brand with a very loyal customer base, we would note that even a powerhouse like Victoria's Secret can't easily absorb free shipping costs due to a relatively low average basket size.

It's high-ticket retailers like Nordstrom (JWN) and brands like Nike (NKE) and Ralph Lauren (RL) that could absorb shipping costs without a material hit to their margins. 

A Quick Thought on Victoria's Secret "Free Shipping" | $LB - vs2