Categories Earnings, Retail

L Brands reports 8% jump in revenue; stock slips on weak guidance

The Columbus-based retailer L Brands (LB) reported a 7.7% increase in net sales, while earnings plunged almost 50% year-over-year to $47.5 million in the first quarter. Earnings came in at $0.17 per share, down from $0.33 a year ago.

Comparable sales for the owner of Victoria’s Secret, PINK, and Bath & Body Work brands jumped 3% compared to last year. L Brands has been facing the negative impact of e-commerce growth on brick and mortar retailers. Victoria’s Secret’s store sales have been on the downtrend and the company has been struggling to keep it in line with customer expectations.

On a brand basis, Victoria’s Secret narrowed its comp sale decline to 5% from a 12% decline last year. First-quarter sales declined marginally by 0.8% at the lingerie chain to $1.2 billion. At PINK, the company saw its second consecutive month of negative comp sales in April. The brand has been trying to succeed on its initiatives by promotions and discounts but all in vain, gaining little success. At Bath & Body Work, comp sales witnessed 5% growth.

L Brands first quarter 2018 earnings

Earlier this month, the company had lowered its full-year 2018 EPS outlook to $2.70 to $3.00 from $2.95 to $3.25. For the second quarter, the company expects earnings per share to come in between $0.30 and $0.35.

The shares of L Brands have declined 32% year-to-date, while since January it has plunged more than 43%. The stock tumbled further and dropped as much as 6% post the earnings release today on weak guidance.

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top