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.
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 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.
