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.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
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.
[nativounit]
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.
[wallst_email_signup]
Contact [email protected] for any questions or corrections.
Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
