Why L Brands Earnings Are Just Good Enough
L Brands released its fiscal third-quarter financial results after the markets closed on Wednesday, and shares popped in after-hours trading.
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L Brands Inc. (NYSE: LB) released fiscal third-quarter financial results after markets closed Wednesday. The firm said that it had $0.02 in earnings per share (EPS) and $2.68 billion in revenue, compared with consensus estimates that called for $0.02 in EPS and $2.69 billion in revenue. The same period of last year had $0.16 in EPS and $2.78 billion in revenue.
During the latest quarter, comparable sales decreased by 2% compared to the third quarter of last year. In terms of the comparable sales breakdown, Victoria’s Secret decreased 7% and Bath & Body Works increased 9%.
In terms of segment sales:
- Victoria’s Secret had net sales of $1.41 billion, consisting of in-store sales of $1.08 billion and direct sales of $331.3 million.
- Bath & Body Works had net sales of $1.06 billion, with in-store sales of $871.7 million and direct sales of $192.4 million.
Looking ahead, the company expects to see EPS in the range of $2.00 to $2.40 for the fiscal fourth quarter and $2.30 to $2.60 for the full year. Consensus estimates call for $1.98 in EPS for the fourth quarter and $2.39 for the full year.
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Shares of L Brands closed Wednesday down 7% at $15.98, in a 52-week range of $15.80 to $34.89. The consensus analyst price target is $21.13. Following the announcement, the stock was initially up about 2% at $16.35 in the after-hours session.
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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.
