Victoria’s Secret-parent L Brands Inc. has wings of its own.
The company boosted its third-quarter profit projections and said October comparable-store sales rose 5 percent, with gains at Victoria’s Secret stores and Bath & Body Works that were in line with the corporate average.
Sales at the Victoria’s Secret Direct division, which are excluded from the comp base, rose about 7 percent for a slightly stronger showing.
The company is now looking for earnings a share of 51 cents to 53 cents for the third quarter, above the 40 cents to 45 cents it previously projected and earnings of 44 cents a year ago. Wall Street was already feeling bullish, but not quite bullish enough, and pegged the firm for profits of 48 cents a share, below the new guidance.
The results show the cat-and-mouse game companies play with investors and their projections. L Brands topped its expectations for the second quarter, when net income gained 7.5 percent, but the outlook for the third quarter was weaker than analysts projected, pushing the stock lower when second-quarter results came out in mid-August.
Wall Street analysts appeared to ignore the guidance and the third-quarter consensus estimate held steady at 48 cents, which the company ended up beating anyway.
Still, the game was enough to get some investors excited and shares of the firm increased 2.6 percent to $98.92 in afterhours trading today.
L Brands pulled back the curtain on its results ahead of an investor meeting scheduled for Tuesday.
That should be almost as flashy as Victoria’s Secret fashion show next week. The brand recently revealed that high-fashion model Gigi Hadid had earned her wings and would become an angel for the brand.
The annual show returns to New York from London this year. Rihanna, Selena Gomez and The Weeknd are set to perform. Among the other Angels are Elsa Hosk, Jac Jagaciak, Jasmine Tookes, Kate Grigorieva, Lais Ribeiro, Lily Donaldson, Martha Hunt, Romee Strijd, Sara Sampaio, Stella Maxwell, Taylor Hill and Victoria’s Secret Pink model Rachel Hilbert.