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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.

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