L Brands Inc. late Wednesday reported a robust pickup in second-quarter earnings that just beat Wall Street’s expectations.
During the three months ended Aug. 3, the company, formerly known as Limited Brands Inc., registered a 24.5 percent increase in net income to $178.9 million, or 61 cents a diluted share, from $143.6 million, or 49 cents, in the year-ago period. On average, analysts had expected earnings per share of 60 cents.
Revenues gained 4.9 percent to $2.52 billion from $2.4 billion in the 2012 quarter while same-store sales increased 2 percent. The consensus among analysts was for revenues of $2.51 billion.
The operator of Victoria’s Secret and Bath & Body Works said it expected third-quarter earnings of between 23 and 28 cents a share, below Wall Street’s consensus estimate of 29 cents, and full-year EPS of $3.06 to $3.21, up from previous guidance of $2.95 to $3.15. The high range of the revised outlook for the year matched the previous consensus estimate.
Stifel Nicolaus analyst Richard Jaffe pointed out that the newly issued third-quarter guidance includes a negative impact of between 2 and 3 cents a share to cover calendar timing shifts at Victoria’s Secret and costs for system implementation at La Senza. He reiterated his “hold” rating on the stock, noting that the business has continued to grow at a “steady and deliberate pace, limiting risk and laying the foundation for consistent future growth.” However, with the stock recently trading at 17 times Stifel’s estimate for the year, “much of the good news is reflected in the current stock price.”
Shares Wednesday closed at $59.85, down 51 cents or 0.8 percent, but declined in after-hours trading an additional 3.3 percent, to $57.85.
The company will hold a conference call this morning to discuss the results and outlook.
My character, Dinah Madani, is just the coolest, [most] badass woman imaginable," says @amberroserevah. The actress stars in @marvel's newest series on @netflix, @thepunisher. To prepare for her role, Revah sat down with Homeland agents to get a real sense of with Dinah's day-to-day life is really like. Read our full interview on WWD.com. #wwdeye (📷: @jilliansollazzo)
A scene from the 91st annual @macys Thanksgiving Day Parade. The parade, which boasts 50 million TV viewers and 3.5 million on-site spectators, is considered one of the largest and most watched parades in the world. (📷: Jason Szenes/EPA-REX)
The circus came to @bloomingdales 59th Street on Tuesday night and lit up Lexington Avenue with acrobatic dancers, death-defying knife throwing, sword swallowing and aerial acts with no net. The 45 minutes of theatrics built up to unveiling the holiday windows depicting @swarovski crystal-encrusted circus pieces and scenes from “The Greatest Showman” – songs from the soundtrack included. See the rest of the photos on WWD.com #wwdfashion (📷: Joshua Scott)
The psychedelic fashion that pervaded the ’60s is back with an exhibit at the @museumofcityny. “Mode New York: Fashion Takes a Trip” chronicles the changing styles from 1960 through 1973 and features designers such as @ysl, @oscardelarenta and more. The exhibition, which is on display through April 1, is organized into four periods: First Lady Fasion, Youthquake, New Bohemia and New Nonchalance. Pictured here is model Pat Bardonella during the Garvey Day Parade in 1968. (📷: @kwamebphoto) #wwdeye #wwdfashion
“People should be a lot more honest in expressing both the dark and light of themselves. We need to give each other the space to do that because it’s the only way we can grow and evolve,” says @noelwells of her new film “Mr. Roosevelt,” which is largely based on her own struggles. Unexpectedly leaving @nbcsnl in 2014 after just one season, Wells felt set back in her self-esteem and career trajectory. She quickly refocused her energy to more personal projects, which led to the completion of “Mr. Roosevelt.” Read the rest of WWD’s interview with the “Master of None” actress on WWD.com #wwdeye (📷: @jilliansollazzo)
@barbrastreisand is giving fans a chance to see her perform up close in a new concert series, which makes its debut on @Netflix today. From behind-the-scenes takes to her concert performance in Miami last December, the two-hour streaming special captures Streisand in her element. Pictured here is the singer/actress photographed for WWD in 1963. (📷: Palmieri Tony) #wwdeye #wwdarchive
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)