The Secret Behind the Record Results at L Brands
L Brands shares rallied early Thursday after the company reported its most recent quarterly results late on Wednesday.
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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 $1.13 in earnings per share (EPS) and $3.055 billion in revenue, compared with consensus estimates that called for $0.09 in EPS and revenue of $2.67 billion. The same period of last year reportedly had EPS of $0.02 on $2.68 billion in revenue.
Management noted that L Brands reported a record third quarter, driven by exceptional results and continued strength at Bath & Body Works, and a significant improvement in performance at Victoria’s Secret.
The company reported comparable sales of 28% for the quarter, this number includes direct sales (online), and it excludes periods when stores were closed for four consecutive days or more. Counting this way, Bath & Body Works saw comparable sales increase 56% and Victoria’s Secret comparable sales increased 4%.
Now excluding direct sales, but still following the four consecutive day closure rule, L Brands had comparable sales growth of 13%. Bath & Body Works comparable sales increased by 38% and Victoria’s Secret comparable sales decreased by 10%.
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In terms of segment sales:
- Victoria’s Secret had net sales of $1.35 billion.
- Bath & Body Works had net sales of $1.70 billion.
The company did not provide guidance, citing COVID-19 uncertainty. However, analysts are calling for $1.87 in EPS and $4.62 billion in revenue for the fiscal fourth quarter.
L Brands stock hit a new 52-week high of $39.95 early Thursday. The 52-week low is $8.00, and the consensus price target is $32.71.
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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.
