L Brands Reports Holiday 2020 Sales and Provides Fourth Quarter Earnings Guidance
January 07 2021 - 6:15AM
L Brands, Inc. (NYSE: LB) reported net sales of $3.836 billion for
the nine weeks ended Jan. 2, 2021, compared to net sales of $3.906
billion for the nine weeks ended Jan. 4, 2020. Comparable sales
increased 5 percent for the nine weeks ended Jan. 2, 2021, compared
to the nine weeks ended Jan. 4, 2020.
At Bath & Body Works, comparable sales
increased 17 percent for the nine weeks ended Jan. 2, 2021,
including a comparable sales increase of 5 percent in stores and 64
percent sales growth in the direct channel. The merchandise margin
rate for the quarter-to-date period increased significantly.
At Victoria’s Secret, comparable sales decreased
9 percent for the nine weeks ended Jan. 2, 2021, including a
comparable sales decrease of 23 percent in stores and 24 percent
sales growth in the direct channel. The merchandise margin rate for
the quarter-to-date period increased significantly.
The company currently expects to report fourth
quarter earnings per share between $2.70 and $2.80. The company
plans to report fourth quarter earnings on Feb. 24, 2021.
Andrew Meslow, Chief Executive Officer of L
Brands and Bath & Body Works, said “We are very pleased with
our Holiday results, which significantly exceeded our initial
expectations, driven by an increase in profitability at both Bath
& Body Works and Victoria’s Secret. In this challenging
environment, we maintained our focus on customer and associate
safety and delivered exceptional execution. Bath & Body Works
continues to deliver record results, demonstrating the strength of
the brand. The turnaround at Victoria’s Secret also continues to
gain momentum, driven by an improved merchandise assortment and
focused execution of retail fundamentals and our profit improvement
plan.”
Meslow added, “These results would not be
possible without the dedication and hard work of all of our
associates and partners … in stores, distribution, fulfillment and
call centers, home office and the supply chain. We’d like to
express our sincere appreciation for their efforts.”
Further commentary on L Brands’ Holiday sales
results can be found on our website, www.LB.com.
ABOUT L BRANDS:L Brands, through Victoria’s
Secret, PINK and Bath & Body Works, is an international
company. The company operates 2,682 company-operated specialty
stores in the United States, Canada and Greater China, and its
brands are also sold in more than 700 franchised locations
worldwide. The company’s products are also available online at
www.BathandBodyWorks.com, www.VictoriasSecret.com and
https://www.victoriassecret.com/us/pink.
Safe Harbor Statement Under the Private Securities
Litigation Reform Act of 1995
We caution that any forward-looking statements
(as such term is defined in the Private Securities Litigation
Reform Act of 1995) contained in this press release or made by our
company or our management involve risks and uncertainties and are
subject to change based on various factors, many of which are
beyond our control. Accordingly, our future performance and
financial results may differ materially from those expressed or
implied in any such forward-looking statements. Words such as
“estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,”
“intend,” “planned,” “potential” and any similar expressions may
identify forward-looking statements. Risks associated with the
following factors, among others, in some cases have affected and in
the future could affect our financial performance and actual
results and could cause actual results to differ materially from
those expressed or implied in any forward-looking statements
included in this press release or otherwise made by our company or
our management:
- General economic conditions, consumer confidence, consumer
spending patterns and market disruptions including pandemics or
significant health hazards, severe weather conditions, natural
disasters, terrorist activities, financial crises, political crises
or other major events, or the prospect of these events;
- divestitures or other dispositions, including any divestiture
of Victoria’s Secret and related operations, could negatively
impact our business, and contingent liabilities from businesses
that we have sold could adversely affect our financial
statements;
- the seasonality of our business;
- difficulties arising from turnover in company leadership or
other key positions;
- our ability to attract, develop and retain qualified associates
and manage labor-related costs;
- liabilities arising from divested businesses;
- the dependence on mall traffic and the availability of suitable
store locations on appropriate terms;
- our ability to grow through new store openings and existing
store remodels and expansions;
- our ability to successfully expand internationally and related
risks;
- our independent franchise, license and wholesale partners;
- our direct channel businesses;
- our ability to protect our reputation and our brand
images;
- our ability to attract customers with marketing, advertising
and promotional programs;
- our ability to protect our trade names, trademarks and
patents;
- the highly competitive nature of the retail industry and the
segments in which we operate;
- consumer acceptance of our products and our ability to manage
the life cycle of our brands, keep up with fashion trends, develop
new merchandise and launch new product lines successfully;
- our ability to source, distribute and sell goods and materials
on a global basis, including risks related to:
- political instability, environmental hazards or natural
disasters;
- significant health hazards or pandemics, which could result in
closed factories, reduced workforces, scarcity of raw materials,
and scrutiny or embargoing of goods produced in infected
areas;
- duties, taxes and other charges;
- legal and regulatory matters;
- volatility in currency exchange rates;
- local business practices and political issues;
- potential delays or disruptions in shipping and transportation
and related pricing impacts;
- disruption due to labor disputes; and
- changing expectations regarding product safety due to new
legislation;
- our geographic concentration of vendor and distribution
facilities in central Ohio;
- fluctuations in foreign currency exchange rates;
- stock price volatility;
- our ability to pay dividends and related effects;
- our ability to maintain our credit rating;
- our ability to service or refinance our debt;
- shareholder activism matters;
- the ability of our vendors to deliver products in a timely
manner, meet quality standards and comply with applicable laws and
regulations;
- fluctuations in product input costs;
- our ability to adequately protect our assets from loss and
theft;
- fluctuations in energy costs;
- increases in the costs of mailing, paper and printing;
- claims arising from our self-insurance;
- our ability to implement and maintain information technology
systems and to protect associated data;
- our ability to maintain the security of customer, associate,
third-party or company information;
- our ability to comply with laws and regulations or other
obligations related to data privacy and security;
- our ability to comply with regulatory requirements;
- legal and compliance matters; and
- tax, trade and other regulatory matters.
We are not under any obligation and do not
intend to make publicly available any update or other revisions to
any of the forward-looking statements contained in this press
release to reflect circumstances existing after the date of this
press release or to reflect the occurrence of future events even if
experience or future events make it clear that any expected results
expressed or implied by those forward-looking statements will not
be realized.
For further information, please contact:
L
Brands: |
Investor
RelationsAmie Preston(614) 415-6704apreston@lb.com |
Media
RelationsBrooke Wilson(614) 415-6042communications@lb.com |
L BRANDSHOLIDAY
2020
Comparable Sales Increase (Decrease) (Stores and
Direct):
|
November andDecember |
|
Year-to-Date |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
Bath & Body Works1 |
17% |
|
9% |
|
44% |
|
9% |
Victoria’s Secret2 |
(9%) |
|
(12%) |
|
(1%) |
|
(8%) |
L Brands |
5% |
|
(3%) |
|
20% |
|
(2%) |
NOTE: Stores are excluded from
the comparable sales calculation when they have been closed for
four consecutive days or more. Therefore, comparable sales results
for 2020 exclude periods of time that stores were closed for four
consecutive days or more as a result of the COVID-19 pandemic.
Refer to our SEC filings for further discussion regarding our
comparable sales calculation.1 – Results include company-operated
stores in the U.S. and Canada and direct sales.2 – Results include
company-operated stores in the U.S., Canada, the U.K. (pre-joint
venture) and Greater China and direct sales.
Comparable Sales Increase (Decrease) (Stores
Only):
|
November and December |
|
Year-to-Date |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
Bath & Body Works1 |
5% |
|
4% |
|
25% |
|
5% |
Victoria’s Secret2 |
(23%) |
|
(12%) |
|
(17%) |
|
(9%) |
L Brands |
(7%) |
|
(4%) |
|
4% |
|
(4%) |
NOTE: Stores are excluded from
the comparable sales calculation when they have been closed for
four consecutive days or more. Therefore, comparable sales results
for 2020 exclude periods of time that stores were closed for four
consecutive days or more as a result of the COVID-19 pandemic.
Refer to our SEC filings for further discussion regarding our
comparable sales calculation.1 – Results include company-operated
stores in the U.S. and Canada.2 – Results include company-operated
stores in the U.S., Canada, the U.K. (pre-joint venture) and
Greater China.
Total Company-Operated Stores:
|
|
|
|
|
|
|
Stores at2/1/20 |
Opened |
Closed |
Transferred tojoint venture |
Stores at1/2/21 |
|
|
|
|
|
|
Bath & Body Works |
1,637 |
26 |
(19) |
- |
1,644 |
Bath & Body Works
Canada |
102 |
1 |
- |
- |
103 |
Total Bath and Body Works |
1,739 |
27 |
(19) |
- |
1,747 |
|
|
|
|
|
|
Victoria's Secret |
909 |
19 |
(223) |
- |
705 |
PINK |
144 |
2 |
(3) |
- |
143 |
Victoria's Secret Canada |
33 |
- |
(10) |
- |
23 |
PINK Canada |
5 |
- |
(3) |
- |
2 |
Victoria’s Secret
U.K./Ireland |
21 |
- |
- |
(21) |
- |
PINK U.K. |
5 |
- |
- |
(5) |
- |
Victoria’s Secret Beauty and
Accessories |
41 |
1 |
(6) |
- |
36 |
Victoria’s Secret Greater
China |
23 |
4 |
(1) |
- |
26 |
Total Victoria's Secret |
1,181 |
26 |
(246) |
(26) |
935 |
|
|
|
|
|
|
Total L
Brands |
2,920 |
53 |
(265) |
(26) |
2,682 |
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