L Brands Just Can’t Seem to Win With Earnings
L Brands shares pulled back after the company reported its most recent quarterly results late on Thursday.
When L Brands Inc. (NYSE: LB) reported its most recent quarterly results late on Thursday, the company said it had $0.30 in earnings per share (EPS) on $2.62 billion in revenue. Consensus estimates had called for $0.30 in EPS on revenue of $2.58 billion. The fiscal third-quarter financial results from last year had EPS of $0.42 and $2.58 billion in revenue.
During this past quarter, comparable sales decreased 1%. At the same time, the exit of the swim and apparel categories had a negative impact of about two percentage points to both total company and Victoria’s Secret comparable sales.
In terms of its segments, the firm reported as follows:
- Victoria’s Secret saw comparable sales drop by 4% for this quarter, down from a decrease in 1% from the third quarter from last year. Total revenues were $1.54 billion for the quarter.
- Bath & Body Works saw comparable sales increase by 4% this quarter, which dropped about from 7% in the same period from last year. Total revenues were $815.8 million for the quarter.
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Looking ahead, the company said that it expects EPS of $1.95 to $2.10 for the fourth quarter, or $3.05 to $3.20 for the full year 2017. The consensus estimates call for $2.03 in EPS for the fourth quarter and $3.14 for the fiscal full year.
Excluding Thursday’s move, L Brands was down about 25% year to date, vastly underperforming the broad markets. Over the past 52 weeks, the stock is down closer to 28%.
Shares of L Brands traded down about 3% early Thursday to $47.68. The consensus analyst price target is $47.04, and the 52-week trading range is $35.00 to $75.50.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
