L Brands Lifts FY Adj. EPS View, But Cuts Annual Dividend; Stock Down

(RTTNews) - L Brands Inc. (LB) said that it expects 2018 fourth quarter earnings per share to be $1.90 to $2.10. Analysts polled by Thomson Reuters expect the company to report earnings of $1.99 per share for the fourth-quarter. Analysts' estimates typically exclude special items. It increased its full year 2018 adjusted earnings per share guidance to $2.60 to $2.80 from the prior estimation of $2.45 to $2.70. Analysts expect annual earnings of $2.63 per share.

The company noted that its board plans to reduce the company's annual ordinary dividend to $1.20 from $2.40 currently, beginning with the quarterly dividend to be paid in March 2019. The approximately $325 million in cash made available from the dividend reduction will be utilized primarily to contribute to the deleveraging of the company's balance sheet over time.

The company also announced that John Mehas has been named chief Executive Officer of Victoria's Secret Lingerie, effective early 2019, replacing Jan Singer, who has resigned.

Mehas is currently serving as President of Tory Burch, the iconic lifestyle brand. Previously he led Club Monaco, a Polo Ralph Lauren brand, for 13 years as President and CEO. Mehas gained his early retail and merchandising experience at The Gap and Bloomingdales.

LB closed Monday regular trading at $34.55, down $0.73 or 2.07 percent. In the after-hours, the stock further dropped $1.65 or $4.78%.