Latest News

Victoria’s Secret parent L Brands first-quarter earnings, sales top estimates

0

Shoppers pass in front of a Victoria’s Secret store at a mall in San Diego, California, April 22, 2021.

Bing Guan | Bloomberg | Getty Images

Victoria’s Secret parent L Brands on Wednesday reported first-quarter earnings and sales that topped analysts’ estimates, driven by momentum across its business and more people paying full price for its products.

Its stock was recently down more than 1% in extended trading.

Here’s how the company did for the quarter ended May 1, compared with what analysts were anticipating, based on a Refinitiv survey:

  • Earnings per share: $1.25 adjusted vs. $1.21 expected
  • Revenue: $3.02 billion vs. $3.01 billion expected

Net income rose to $276.6 million, or 97 cents per share, compared with a loss of $296.9 million, or $1.07 per share, a year earlier. Excluding one-time charges, L Brands earned $1.25 per share, beating the $1.21 that analysts were forecasting.

Total sales surged more than 80% to $3.02 billion from $1.65 billion a year earlier. That topped estimates for $3.01 billion.

Total same-store sales were up 21% year over year, compared with a 4% increase in the year-ago period.

By this fall, L Brands will be spinning off its Victoria’s Secret business into its own publicly traded entity, and said it wouldn’t provide a forecast for the rest of the year.

L Brands has said the split will allow both of its brands to better focus on growth and have greater financial flexibility to adapt to a changing retail landscape. It had been contemplating either a spinoff or a sale, but said the spinoff ended up being the best option for the business to fetch the highest value.

As of Wednesday’s market close, L Brands shares are up about 82% year to date. The company has a market cap of $18.8 billion.

Find the full press release from L Brands here.

This story is developing. Please check back for updates.

The Fed hinted it could reconsider easy policies if economy continues rapid improvement

Previous article

Tom Lee says stocks may be primed for a big rally. Here’s why

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News