Why L Brands’ Q2 Was a Little Too Skimpy

August 22, 2019 by Chris Lange

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.

ALSO READ: Despite Recent Volatility, RBC Still Very Bullish on 4 Semiconductor Stocks

Smart Investors Are Quietly Loading Up on These “Dividend Legends” (Sponsored)

If you want your portfolio to pay you cash like clockwork, it’s time to stop blindly following conventional wisdom like relying on Dividend Aristocrats. There’s a better option, and we want to show you. We’re offering a brand-new report on 2 stocks we believe offer the rare combination of a high dividend yield and significant stock appreciation upside. If you’re tired of feeling one step behind in this market, this free report is a must-read for you.

Click here to download your FREE copy of “2 Dividend Legends to Hold Forever” and start improving your portfolio today.

Posted in Retail | Comments Off on Why L Brands’ Q2 Was a Little Too Skimpy