L Brands (NYSE:LB) stock was falling hard on Thursday after slashing its profit outlook for the full year of 2018.
The blow to L Brands stock is the result of the company cutting its earnings per share estimate for 2018 to between $2.45 and $2.70. It was previously expecting earnings per share for the year to range from $2.70 to $3.00. This is bad news for L Brands stock as Wall Street is estimating earnings per share of $2.77 for 2018.
The rest of the company’s guidance in its most recent earnings report also didn’t do L Brands stock any favors today. The company says it is expecting earnings per share for the third quarter of 2018 to range from flat to 5 cents. However, analysts’ are looking for earnings per share of 16 cents for the third quarter of the year.
Another bit of news that may be dragging L Brands stock down today is a change in leadership at the company. Denise Landman, CEO of Victoria’s Secret PINK, will be retiring at the end of the year. The company notes that Amy Hauk, current President of Merchandising and Product Development for Bath & Body Works, will be taking over the role.
These announcements come alongside L Brands earnings report for the second quarter of 2018. This includes earnings per share of 36 cents on revenue of $2.98 billion. This compares to earnings per share of 48 cents and revenue of $2.76 billion from the same time last year. Wall Street was expecting earnings per share of 34 cents on revenue of $2.98 billion.
LB stock was down 13% as of noon Thursday.
As of this writing, William White did not hold a position in any of the aforementioned securities.
