L Brands Q4 Comps. Rise; Lifts Dividend, Approves $500 Mln Share Buyback

(RTTNews) - L Brands, Inc. (LB) reported an increase in comparable store sales for the fourth quarter and also raised its earnings outlook for the quarter above analysts' estimates.

In addition, the company increased its annual ordinary dividend by 20 percent and authorized a new $500 million share repurchase program.

L Brands said its comparable store sales for the fourth quarter ended January 30, 2016 increased 6 percent. Net sales for the quarter rose 8 percent to $4.40 billion from $4.07 billion in the year-ago period.

Net sales for the year ended January 30, 2016, were $12.15 billion, an increase of 6 percent compared to $11.45 billion for the prior year. Comparable store sales for the year increased 5 percent.

For the fourth quarter, the company expects to report earnings per share of about $2.05, above its previous guidance of $1.85 to $1.95 per share.

On average, 34 analysts polled by Thomson Reuters expect the company to report earnings of $2.00 per share for the quarter. Analysts' estimates typically exclude special items.

The company will report fourth-quarter results and provide 2016 earnings guidance on its earnings call, which will be held on February 25.

L Brands said it is increasing its annual ordinary dividend by 20 percent, to $2.40 per share from $2.00 per share. In addition, the company announced a special dividend of $2.00 per share.

The quarterly ordinary dividend of $0.60 per share and the $2.00 special dividend will be paid on March 4, 2016, to shareholders of record on February 19, 2016.

Additionally, the company has authorized a new $500 million share repurchase program, which includes the remaining $17 million outstanding under the previous program. The company repurchased $483 million of stock in 2015.