L Brands (LB) says same-store sales rose 5%

On November 27, 2020, shoppers lined up while waiting for the Victoria’s Secret store to open on Black Friday at Tyson Corner Center in Tyson, Virginia.

Hannah McKay | Reuters

Parents of Victoria’s Secret, L Brands, said its same-store sales rose 5% during the holiday period on Thursday, compared with a 3% drop from a year earlier as shoppers wore more lounge wear, hand soap and more before the new year. Bought candles.

CEO Andrew Meslow said the company’s holiday results “exceeded our initial expectations,” as efforts to cut back on promotions and sell more products at full price.

The retailer, which owns Bath & Body Works, is now calling for fourth-quarter earnings of between $ 2.70 and $ 2.80 per share. According to refinitiv figures, analysts expected $ 1.96.

L Brands is targeting fourth quarter revenue of $ 3.84 billion. Analysts were seeking $ 4.74 billion.

The company’s shares were up more than 5% in late-morning trading, which has risen more than 150% in the last 12 months.

For the two-week period ended January 9, L Brands posted net sales of $ 3.84 billion, down 1.8% from $ 3.91 billion a year earlier.

Within Victoria’s Secret, same-store sales – which track sales both online and in-store, have been open for at least 12 months – fell 9% over the holiday period, with the metric being 23% brick-less. -Mortar stores, in large part due to fall in mall traffic during the Kovid epidemic. Victoria Secret had an average price spent on an item, it said.

Same-store sales for Bath and Body Works were 17%, including a 5% profit in stores.

“Bath & Body Works releases record results showcasing the brand’s strengths,” Meslow said in a statement.

“Changes to Victoria’s Secret are also continuing to gain momentum, driven by an improved merchandise assortment and retail fundamentals and execution of our profit improvement plan,” he said.

L Brands is expected to report fourth-quarter earnings on February 24.

See full holiday results of L Brands here.


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