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.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast