L Brands Inc (LB) Shares Slide as Bottom Line Falls 29%

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L Brands Inc (NYSE:LB) shares fell after the bell Wednesday as the company posted meek third-quarter results.

L Brands Inc (LB)The company — which owns brands such as Victoria’s Secret — unveiled earnings that fell to $85.99 million, or 30 cents per share on an adjusted basis. A year ago, L Brands garnered a profit of $121.64 million, or 42 cents per share.

The figure was in line with analysts’ consensus estimate of 30 cents per share, according to Thomson Reuters. Revenue managed to grow 1.2% to $2.61 billion from last year’s $2.58 billion.

Comparable sales also took a hit at L Brands, falling 1% year-over-year. Both L Brands and Victoria’s Secret took a hit as the company stopped selling in the swim and apparel categories, costing it 2 percentage points to both the parent company and the lingerie brands.

Total comparable sales were hit even harder, decreasing 3% for the third quarter, and this figure was steeper for Victoria’s Secret, down 5%. For Bath & Body works, comparable sales gained 1%.

For its fourth quarter, L Brands predicts it will rake in earnings in the range of $1.95 to $2.10 per share, hiking up the full-year figures to $3.05 to $3.20 per share.

The company also sells personal care products and accessories, most of which are in the U.S. L Brand’s segments include Victoria’s Secret, Victoria’s Secret Pink, Bath & Body Works, La Senza and Henri Bendel.

LB shares fell 3.8% after the bell.


Article printed from InvestorPlace Media, https://investorplace.com/2017/11/l-brands-inc-lb/.

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