L Brands Inc Stock Sinks as Q1 EPS Missed Expectations

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L Brands Inc (NYSE:LB) reported its latest quarterly earnings results after hours Wednesday, which sent shares tumbling as the company missed analysts’ expectations.

L Brands IncThe company — which owns Victoria’s Secret — announced first-quarter adjusted earnings for its fiscal 2018 of 17 cents per share, well below the 33 cents per share it brought in during the year-ago quarter. Wall Street was calling for adjusted earnings of 18 cents per share in its consensus estimate.

Operating income for L Brands’ first quarter was around $154.8 million, compared to $209.2 million in the year-ago quarter. The company’s net income was $47.5 million, also well below the $94.1 million that the company raked in during the first quarter of fiscal 2018.

L Brands also brought in net sales of $2.63 billion for the quarter, which marked an increase of about 8% compared to the year-ago period, when it raked in $2.44 billion. Analysts were calling for revenue $2.59 billion for the period.

The company’s comparable sales for the period tallied up by 3%. For its fiscal 2018, L Brands lowered its guidance due to a meek first quarter as it now sees its earnings as being in the range of $2.70 to $3 per share. Its previous estimate was in the range of $2.95 to $3.25 per share.

For its second quarter, L Brands now sees its earnings as being in the range of 30 cents to 35 cents per share.

LB stock is down 6.6% after the bell Wednesday, following a 0.2% gain during regular trading hours.


Article printed from InvestorPlace Media, https://investorplace.com/2018/05/l-brands-inc-lb-2/.

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