By Anna Prior
L Brands Inc.'s (LTD) fiscal third-quarter profit rose 25% as
the retailer continued to post higher sales, helped by improving
same-store sales at its Victoria's Secret and Bath & Body Works
units.
The company again raised its full-year view and now sees
full-year profit between $3.07 and $3.22 a share, up from its
August view of $3.06 and $3.21 a share.
However, L Brands projected fiscal fourth-quarter earnings of
$1.67 to $1.82 a share, missing expectations for $1.83 a share from
analysts surveyed by Thomson Reuters.
The company, formerly called Limited Brands Inc., dominates the
intimate-apparel and personal-care markets, though growth for the
company's major store formats in the first half of the current
fiscal year slowed from year-ago levels.
Though retailers have broadly been stung by weak mall traffic
and high promotions, some observers say L Brands has maintained
growth by winning over customers with new products.
For the latest period, L Brands reported a profit of $92
million, or 31 cents a share, up from $73.4 million, or 25 cents a
share, a year earlier. Prior-year results included a four
cents-a-share charge tied to La Senza store closures, partially
offset by a per-share three cent gain from cash distributions
related to the company's Easton investments.
The company earlier this month said it expected earnings to come
in at the high end of its August guidance of 23 cents to 28 cents a
share.
Gross margin narrowed to 39.5% from 40.2%, as cost of goods sold
rose 7.3% to $1.31 billion.
The company recently reported net sales rose 5.9% to $2.17
billion and same-store sales rose 3%. Same-store sales rose 4% at
Victoria's Secret and 3% at Bath & Body Works.
Shares edged up seven cents to $64.48 in after-hours trading.
Through Wednesday's close, the stock has risen 37% since the start
of the year.
Write to Anna Prior at anna.prior@wsj.com
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