L Brands Swings To Q1 Profit Driven By Sales Growth

L Brands Inc. (LB), the parent company of Victoria's Secret, Wednesday reported first-quarter net income of $276.6 million or $0.97 per share, compared net loss of $296.9 million or $1.07 per share last year.

Excluding one-time items, adjusted earnings were $1.25 per share compared to an adjusted loss of $0.99 per share last year.

Sales for the quarter were $3.02 billion, up from $1.65 billion last year.

Analysts polled by Thomson Reuters expected earnings of $1.21 per share on revenues of $3.01 billion for the quarter.

Andrew Meslow, CEO of L Brands, commented, "L Brands delivered record first quarter earnings, driven by continued strength and exceptional performance at Bath & Body Works and Victoria's Secret."

Looking forward to the second quarter, the company forecast adjusted earnings of $0.80 to $1.00 per share. Analysts currently estimate earnings of $0.76 per share for the quarter.

Separately, L Brands announced the appointment of Chief Financial Officers for the standalone Bath & Body Works and Victoria's Secret businesses.

Upon the completion of the spin-off of Victoria's Secret, which is targeted to occur in August 2021, Wendy Arlin, currently SVP of Finance and Controller for L Brands, will become Bath & Body Works CFO, and Tim Johnson, previously CFO and Chief Administrative Officer for Big Lots, will become Victoria's Secret CFO.

As previously announced, current L Brands CFO Stuart Burgdoerfer will retire at that time.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
General Electric Co. reported Tuesday narrower net loss in its second quarter with strong growth in revenues. The company also generated strong order growth. Looking ahead, the company reiterated its outlook for adjusted earnings per share, while increased its 2021 outlook for Industrial free cash flow range. In pre-market activity on NYSE, GE shares were gaining around 4 percent. The U.S. Food and Drug Administration announced recall of Old Soul's Farms LLC's certain leafy green products as well as Excalibur Seasoning Co.'s Haen Meats Seasoning Blend, citing potential contamination with Listeria monocytogenes, an organism. Consumption of food contaminated with L. monocytogenes can cause listeriosis, a serious infection and sometimes fatal infections. Tobacco giant Philip Morris International plans to stop selling cigarettes in the United Kingdom in the next decade, according to its CEO Jacek Olczak. In an interview with the Daily Mail Sunday, Olczak said the sales of the company's most popular product Marlboro cigarettes will also be stopped. The move is said to be part of the company's plan to phase out traditional tobacco products.
Follow RTT