L Brands Inc. stock is declining by over 9 percent to $72.43 after the company reported same-store sales that fell 1 percent in April, missing the Thomson Reuters estimate for an increase of 4.8 percent.
L Brands said net sales increased 2 percent to $737.5 million for the four weeks ending April 30, compared to net sales of $724.6 million for the four weeks ending May 2, 2015.
Thomson had estimated that April sales at Victoria’s Secret would grow by 4 percent and instead they fell by 1 percent. Bath & Body Works was forecast to report a sales increase of 6.1 percent in April, but delivered an increase of only 5 percent.
L Brands said that it expects to report adjusted first-quarter earnings per share at the high end of the range of its previous guidance of 50 to 55 cents. The Capital IQ estimate for the first quarter is for 56 cents a share.
The sales miss put retail investors on edge, sending the SPDR S&P Retail ETF down by 71 cents to $43.10.
Other same-store sales disappointments came from The Buckle Inc., which had been estimated to report a sales decline of 6.9 percent, but the company said sales in April dropped 13.2 percent. The Buckle stock fell by 5 percent to $27.38.
The Cato Corp. was forecast to deliver flat sales, but reported a drop of 3 percent. The company said sales were hurt by the shift in Easter from April of last year to March of this year. The company said that it now expects first-quarter earnings per diluted share will be in the range of $1.23 to $1.27 versus $1.11 last year. The raised guidance helped keep the stock selling in check, with shares only dropping by 1 percent to $36.04.
Zumiez Inc. reported its April same-store sales after the market close on Wednesday and also missed the Thomson estimates. Zumiez was estimated to see sales drop by 4.3 percent, but they actually fell 6 percent. The stock is declining by over 7 percent to $14.78. The company said that based on the first-quarter sales results, it expects the net loss per share for the quarter to be below the low end of its guidance range, which had been between negative 7 cents and negative 11 cents a share. The Capital IQ estimate is for a loss of 10 cents a share.