Why L Brands’ Q2 Was a Little Too Skimpy
L Brands shares dropped early Thursday after it released mixed fiscal second-quarter financial results late on Wednesday.
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L Brands Inc. (NYSE: LB) released its fiscal second-quarter financial results after the markets closed on Wednesday. The retailer said that it had $0.24 in earnings per share (EPS) and $2.90 billion in revenue, which compares with consensus estimates of $0.19 in EPS and revenue of $2.95 billion. The same period of last year reportedly had EPS of $0.36 on $2.98 billion in revenue.
During the latest quarter, comparable sales decreased 1% compared to the second quarter of last year. In terms of the comparable sales breakdown: Victoria’s Secret decreased 6% and Bath & Body Works increased 8%.
In terms of the segment sales:
- Victoria’s Secret had net sales of $1.61 billion, consisting of in-store sales of $1.23 billion and direct sales of $373.1 million.
- Bath & Body Works had net sales of $1.06 billion, with in-store sales of $882.5 million and direct sales of $178.4 million.
Looking ahead, the company expects to see EPS in the range of −$0.05 to $0.05 for the fiscal third quarter and $2.30 to $2.60 for the full year. Consensus estimates call for $0.08 in EPS for the third quarter and $2.45 for the full year.
See why L Brands CEO Les Wexner is among the chief executives who need to go.
Shares of L Brands traded down about 10% Thursday morning to $18.31, in a 52-week range of $18.01 to $38.00. The consensus price target is $27.24.
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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.
