Shares of Victoria's Secret-owner L Brands plunge on weak forecast, mixed holiday results

L Brands, owner of Victoria’s Secret and Bath & Body Works, on Wednesday reported mixed results in the holiday quarter that sent shares of the company down nearly 6 percent.

Same-store sales at its Victoria’s Secret brand have struggled to keep up with changing tastes and new competition, and fell 3 percent.

Bath & Body Works continued outperform the lingerie brand. The fragrance and personal care shop grew same-store sales by 12 percent.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $2.14, adjusted, vs. $2.07 expected
  • Revenue: $4.85 billion vs. $4.88 billion expected

L Brands reported fiscal fourth-quarter net income of $540 million, or $1.94 per share, down from $664 million, or $2.33 per share a year earlier.

Excluding items, L Brands earned $2.14 per share, beating the the $2.07 per share expected by analysts surveyed by Refinitiv.

Net sales rose to $4.85 billion, missing expectations of $4.88 billion.

L Brands said it expects earnings for 2019 will fall between $2.20 and $2.60 a share. That includes break-even earnings per share result in its first quarter.


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