Victoria’s Secret-parent L Brands Inc. boosted second-quarter profits and raised its outlook for the year, but Wall Street was looking for more and pushed the stock lower in after-hours trading today.
Net income for the quarter increased 7.5 percent to $202.5 million, or 68 cents a diluted share, from $188.4 million, or 63 cents, a year earlier. Sales for the three months ended Aug. 1 rose 3.4 percent to $2.77 billion from $2.66 billion on a comparable-store sales increase of 4 percent.
Comps at Victoria’s Secret rose 3 percent, while Bath & Body Works saw slightly stronger growth of 5 percent.
Earnings for the second quarter were in line with analysts’ consensus expectations and the company boosted its earnings guidance for the year — although that might be enough to satiate investors.
The retailer said it is now looking for annual earnings per share of $3.58 to $3.73, up from the $3.50 to $3.70 previously projected. That leaves the upper end of the guidance for the year in line with the $3.73 Wall Street already had penciled in.
The company also projected third-quarter earnings of 40 to 45 cents a share, below the 48 cents analysts projected.
L Brands’ stock fell 1.5 percent to $80 in after-hours trading as investors digested the report.
The company, headed by founder and chief executive officer Leslie Wexner, recently approved a $250 million share repurchase program and is expanding in Europe with new stores in Milan.