Feb 22 L Brands forecast a steeper drop
in February comparable sales as its biggest brand, Victoria's
Secret, faces slowing demand, sending the company's shares down
nearly 13 percent in after-market trading on Wednesday.
L Brands forecast a mid-to-high teens decline in total
comparable sales, above the mid-single digit drop it had
The company said it expected a fall of about 20 percent in
February comparable sales at Victoria's Secret and a mid-single
digit decline at Bath & Body Works.
L Brands has restructured its business to focus on its core
brands and exited certain product categories last year,
including swim and apparel business of Victoria's Secret.
The exit lowered the company's total comparable sales for
the fourth quarter by 2 percentage points, L Brands said on
Ongoing weakness in core lingerie could be more difficult to
repair as management continues to employ various incentives to
rejuvenate traffic, Mizuho Securities analyst Betty Chen said in
a pre-earnings note.
The company's net income fell to $631.7 million, or $2.18
per share, in the fourth quarter ended Jan. 28 from $636
million, or $2.15 per share, a year earlier.
Excluding a tax settlement, L Brands earned $2.03 per share,
above the average analysts' estimate of $1.90 per share,
according to Thomson Reuters I/B/E/S.
Earlier this month, L Brands reported a 2 percent rise in
sales, its slowest quarterly sales growth in three years.
The company's shares were trading at $50.60 after the bell.
Up to Wednesday's close, they had fallen 31 percent in the past
(Reporting by Jessica Kuruthukulangara in Bengaluru; Editing by