US: L Brands books mixed Q4 results
- Earnings up to US$489.6m
- Sales slide 1%
- FY EPS guided at $3-3.20
L Brands, formerly known as Limited Brands, has booked a mixed fourth-quarter with an increase in earnings but a drop in revenues.
The retailer, which operates the Victoria's Secret and Bath & Body Works chains, reported earnings of US$489.6m in the three month period ended 2 February, compared to $519.2m last year.
The increase was due mainly to lower expenses and the absence of a goodwill impairment charge recorded last year.
Sales slid 1% to $3.818bn from $3.856bn in the prior year period. Comparable store sales, however, edged up 1%.
The company said it expects FY EPS to be between $3.00 and $3.20, including EPS of between $0.44 and $0.49 in the first quarter. Comparable store sales are guided to be flat to low-single digit.
FBR Capital Markets analyst Susan Anderson said guidance was "a bit light" versus consensus, but added: "We believe that this was likely expected given the environment (precedent has also been set by other retailers guiding conservatively)."
She added: "We expect a continuation of the promotional environment into 2014 but not significantly more promotional year-on-year. In addition, Limited Brands likely has some benefits at BBW [Bath & Body Works] with higher price points on products that could offset some promotional activity at the segment."
Limited Brands’s flagship apparel brand Victoria’s Secret operates primarily in the US, with more than 1,000 domestic outlets. Whilst a number of stores are expected to be closed, at least 20 new stor...
The launch of Victoria’s Secret in London’s Westfield and New Bond Street locations positively impacted underwear, nightwear and swimwear. Considering recessionary cuts on spending, underwear and nigh...
Women’s leggings continued to see the fastest growth in women’s outerwear in 2012. It increased by 12% in current value terms to reach US$195 million, and grew by 10% in volume terms to reach 10.6 mil...
Overall, value sales of underwear, nightwear and swimwear increased by 3% in current value terms in 2012, to reach US$23.6 billion, whilst volume sales increased by only 2%. A similar trend was observ...
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