By Tess Stynes
L Brands Inc. raised its annual profit guidance and reported
that earnings rose 60% during the quarter ended in May with a boost
from an asset-sale gain.
For the year, the company now expects per-share earnings of
$3.50 to $3.70, compared with its previous estimate for per-share
profit of $3.45 to $3.65.
For the current quarter, the company forecasted per-share
earnings of 60 cents to 65 cents, while analysts polled by Thomson
Reuters expected per-share profit of 69 cents.
The Columbus, Ohio-based company, whose brands include
Victoria's Secret and Bath & Body Works, has been a relative
bright spot in a retail industry that has faced challenges from a
highly promotional environment.
For the period ended May 2, L Brands reported a profit of $250.5
million, or 84 cents a share, up from $157 million, or 53 cents a
share, a year earlier. Excluding items such as the asset-sale gain,
per-share earnings rose to 61 cents from 53 cents. L Brands
expected per-share earnings of 58 cents to 60 cents.
The company recently reported that net sales rose 5% to $2.51
billion and that sales, excluding newly opened and closed stores,
also increased 5%.
On Wednesday, L Brands reported that sales at stores open at
least a year increased 5% at Victoria's Secret and grew 4% at Bath
& Body Works. Analysts expected an increase of 5% at Victoria's
Secret and growth of 4.6% at Bath & Body Works.
Victoria's Secret direct sales declined 6%.
Gross margin rose to 42% from 41.1%.
Write to Tess Stynes at tess.stynes@wsj.com
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