L Brands Profit In Line; Raises FY Outlook

(RTTNews) - Women's apparel retailer L Brands Inc (LB), on Wednesday reported an increase in second-quarter profit, driven by higher sales at Victoria's Secret and Bath & Body Works chains. The company's quarterly earnings came in line with Wall Street estimates while sales fell short of expectations.

L Brands provided some weak outlook for the third quarter, but again lifted its expectations for 2015.

The higher second-quarter profit and the improved full-year guidance come at a time when the retail industry experiences stiff competition and volatile consumer confidence.

Columbus, Ohio-based L Brands posted second-quarter net earnings of $202.5 million or $0.68 per share, compared with $188.4 million or $0.63 per share last year.

On average, 32 analysts polled by Thomson Reuters estimated earnings of $0.68 per share for the quarter. Analysts' estimates typically exclude special items.

Quarterly earnings included a $0.02 per share of negative foreign exchange impact.

L Brands' sales for the second quarter rose to $2.77 billion from $2.68 billion in the prior year. Thirty analysts had a consensus sales estimate of $2.80 billion for the quarter.

Comparable store sales for the quarter were up 4 percent, with Victori's Secret up 3 percent and Bath & Body Works up 5 percent.

Earlier this month, a sampling of U.S. apparel retailers revealed mixed sales at established stores for July. While sales were helped by discount clearing of summer clothing and the start of the back-to-school season shopping, it was partly offset by the shift of sales tax holidays.

For the third quarter, L Brands expect earnings of $0.40 to $0.45 per share, while analysts currently expect $0.48 per share.

For the full year 2015, the company now projects earnings of $3.58 to $3.73 per share, from prior guidance of $3.50 to $3.70 per share. Analysts currently expect earnings of $3.73 per share for the year.

L Brands company operated 2,976 company-owned specialty stores as of August 1.

L Brands stock closed Wednesday at $81.18, up $0.33 or 0.41%, on a volume of 1.9 million shares on the NYSE. In after hours, the stock dropped $0.88 or 1.08% at $79.75.