logo
Plus   Neg
Share
Email

L Brands Q1 Profit Beats Street, Lifts Outlook; Shares Jump 12%

Shares of L Brands Inc. (LB) jumped 12% on extended trading session on Wednesday, after the parent of Victoria's Secret reported a first-quarter profit that trumped Wall Street estimates and raised its guidance for the full year.

Columbus, Ohio-based L Brands' first-quarter profit was $40.3 million or $0.14 per share, down from $47.5 million or $0.17 per share last year. On average, 23 analysts polled by Thomson Reuters estimated earnings to be breakeven per share for the quarter.

L Brands' sales for the quarter rose marginally to $2.629 billion from $2.626 billion last year. Analysts had a consensus revenue estimate of $2.56 billion for the quarter.

Comparable sales for the first quarter were flat compared last year, with Victoria's Secret segment comps down 5%, while Bath & Body Works was up increased 13%.

Looking forward, the company increased its full-year earnings guidance to $2.30 to $2.60 per share from previous outlook of $2.20 to $2.60 per share. The company sees second-quarter earnings of $0.15 to $0.20 per share. Analysts currently estimate earnings of $0.23 per share and $2.39 per share, for second-quarter and full-year.

LB closed Wednesday's trading at $21.50, down $1.18 or 5.20% on the NYSE. The stock, however, gained $2.64 or 12.28% in the after-hours trade.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
The media mogul and Billionaire Sumner Redstone passed away on Tuesday at the age of 97, his family's holding company National Amusements said in a statement on Wednesday. He was Chairman Emeritus of ViacomCBS and chief executive officer of National Amusements. Customers in the U.S. are preferring digital or touchless payment methods due to concerns arising from the COVID-19 pandemic, a survey said. According to the survey by Rapyd Financial Network, the coronavirus pandemic has raised health and safety concerns around using cash and coins, and is accelerating the pre-existing trend toward digital transactions. American Airlines has extended its offer to waive change fees for customers who purchase tickets for travel, until December 31, 2020 in response to lower travel demand due to the coronavirus pandemic. This means that the travelers need not pay penalties for changing the origin and destination cities.
Follow RTT