L Brands Inc. on Wednesday posted first-quarter results that missed Wall Street’s consensus estimates by 1 cent.
L Brands said net income fell 49.5 percent to $47.5 million, or 17 cents a diluted share, from $94.1 million, or 33 cents, a year ago. Net sales rose 7.8 percent to $2.63 billion from $2.44 billion. Wall Street was expecting diluted earnings per share of 18 cents.
For the first quarter, comparable sales for stores and the direct business rose 3 percent. By division, Victoria’s Secret saw comps rise 1 percent, while comps at Bath & Body Works gained 8 percent.
The company lowered its guidance for 2018 full-year EPS to $2.70 to $3.00 from $2.95 to $3.25. It forecasted second-quarter EPS at 30 cents to 35 cents.
Investors reacted by sending shares of L Brands down 6.2 percent to $31.95 in early after-hours trading. L Brands reported earnings results after the close of the equity markets.
During the quarter, the company closed five Victoria’s Secret stores and one Pink store in Canada. It also closed 11 Bath & Body Works stores in the U.S. As for store openings, the company opened one Victoria’s Secret store and 13 Bath & Body Works stores, both in the U.S. market. The company also operates the Henri Bendel and La Senza businesses. In the quarter, L Brands closed three Henri Bendel stores.
The company will hold a conference call to Wall Street analysts on Thursday morning.