L Brands Stock Dips on Q3 Earnings Miss, Dividend Cut

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L Brands stock (NYSE:LB) was sliding late in the day Monday as the company reported its latest quarterly earnings results after the bell, which were below what the company brought in during its year-ago quarter.

L Brands StockThe parent company of Victoria’s Secret said that for its third quarter of fiscal 2018, it posted a loss of $43 million, or 16 cents per share, which is weaker than its earnings of $86 million, or 30 cents per share it posted during the year-ago quarter. On an adjusted basis, the company brought in earnings of 16 cents per share, which is nearly half the 30 cents per share it brought in during the year-ago quarter.

L Brands added that its revenue for the period came in at $2.8 billion, a 6% increase compared to the $2.6 billion it brought in during the year-ago quarter. “During the quarter, we made some tough decisions that enable us to increase our focus on our core businesses and highest growth opportunities,” CEO Leslie H. Wexner said in a statement.

The company is calling for fourth-quarter adjusted earnings of $1.90 to $2.10 per share, while its fiscal 2018 adjusted earnings is slated to be between $2.60 to $2.80 per share, an increase from its previous outlook of $2.45 to $2.70 per share. L Brands added that its board of directors will slash the company’s annual dividend to $1.20 per share from $2.40 per share.

L Brands stock was down about 4.1% after the bell on Monday following the company’s quarterly earnings decline year-over-year, as well as its decision to cut its dividend moving forward. LB shares had been falling about 2.1% during regular trading hours in anticipation of the company’s quarterly earnings results.


Article printed from InvestorPlace Media, https://investorplace.com/2018/11/l-brands-stock-lb-2/.

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