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...
Lingerie is a term used for women's innerwear. It originated from the French word 'linge' for linen. Though in French the term is used for both male and female undergarments, in English it is solely u...
- Low labour cost countries linked to highest risks
- UK reshoring hub hit by sweatshop claims
- New fibre and fabric innovations for outdoor wear
- COMMENT: Skills or new technology?
- Who's winning in UK apparel shopping switch?
- South Africa to grow grass for recyclable textiles
- US West Coast port contract reached
- 30% of Adidas cotton from sustainable sources
- Activewear driving US apparel spend
- Benetton to embark on living wage roadmap
- Myanmar's Garment Sector - Opportunities & Challenges in 2015
- Global market review of swimwear - forecasts to 2019
- Outdoor performance apparel: peaks, valleys, and green fields
- Management briefing: Outlook 2015: Apparel industry issues in the year ahead
- Apparel Retail: Top 5 Emerging Markets Industry Guide