L Brands Q3 earnings and sales climb
- Q3 EPS soars 42%
- Sales increase 7%
- Q4 guidance misses analyst estimates
US apparel retailer L Brands, formerly Limited Brands, has booked an increase in third-quarter earnings and sales but fourth-quarter EPS guidance has missed analyst forecasts.
Earnings per share in the three months ended 1 November soared 42% to US$0.44 per share from $0.31 a year earlier.
Sales amounted to $2.32bn, an increase of 7% on revenues of $2.17bn a year earlier. Comparable store sales were up 5%.
The company reiterated its fourth-quarter earnings per share guidance of $1.61 to $1.71. This fell below Stifel analyst estimates of $1.77 and $1.78, respectively.
The company raised its full-year earnings forecast to $3.21 to $3.31 per share from $3.03 to $3.18 previously.
Stifel analyst Richard Jaffe, noted: "We believe strength in lingerie and Pink drove results at VS stores in the 3Q (comps increased 3%). Strength in go-forward core categories (intimate apparel, fragrance, and Pink) was partially offset by declines in non-go-forward apparel merchandise."
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