L Brands Profit Tops Estimates; Lifts FY Outlook

(RTTNews) - L Brands Inc. (LTD), the women's apparel and personal care products retailer, Wednesday reported a better-than-expected increase in second-quarter profit, helped by higher sales and margins.

Moving forward, the operator of Victoria's Secret and Bath & Body Works chains provided weak earnings outlook for the third quarter, but raised its expectations for the full year 2013.

Shares of the company are losing 2.5 percent in after-hours trading on the New York Stock Exchange.

L Brands, based in Columbus, Ohio, posted quarterly net income of $179 million or $0.61 per share, up from $143.6 million or $0.49 per share last year. On average, 26 analysts polled by Thomson Reuters expected earnings of $0.60 per share. Analysts' estimates typically exclude special items.

Results for the prior-year quarter included $3.6 million of store closure costs at La Senza.

Net sales for the quarter climbed 5 percent to $2.52 billion from $2.4 billion a year ago, topping analysts' estimates of $2.51 billion.

On a same-store basis, sales were up 2 percent.

Results were also helped by a $6 million decrease in general and store operating expenses at $631 million, the company said.

For the third quarter, L Brands expects earnings of $0.23 to $0.28 per share, while analysts estimate $0.29 per share.

For fiscal 2013, the company now expects earnings of $3.06 and $3.21 per share, up from prior range of $2.95 to $3.15 per share. Analysts estimate earnings of $3.21 per share.

At the end of the quarter, L Brands operated 2,629 specialty stores in the U.S., and its brands were sold in more than 700 company-operated and franchised additional locations world-wide.

The company's stock closed Wednesday at $59.84, down $0.52 or 0.86%, on a volume of 1.6 million shares on the NYSE. In after hours, the stock dropped $1.51 or 2.52%.