By Nathalie Tadena
L Brands Inc.'s (LTD) fiscal first-quarter earnings jumped 14%,
topping the retailer's expectations, as revenue continued to
strengthen.
The company, formerly called Limited Brands Inc., projected
second-quarter per-share earnings of 50 cents to 55 cents,
bracketing the 53- cent estimate from analysts polled by Thomson
Reuters. L Brands also lifted its full-year earnings view by three
cents, now projecting earnings between $2.95 to $3.15 a share.
The company, which owns Victoria's Secret and Bath & Body
Works, dominates the intimate-apparel and personal-care markets,
and those segments have helped the retailer post same-store sales
growth and improved margins.
For the period ended May 2, L Brands reported a profit of $142.5
million, or 48 cents a share, up from $124.6 million, or 41 cents a
share, a year earlier. The company earlier this month raised its
per-share earnings view to 46 cents.
Gross margin slipped slightly to 41.5% from 41.9%.
The company recently reported that net sales rose 5.3% to $2.27
billion and same-store sales rose 3%, as growth across its retail
brands offset a decline at Victoria's Secret direct sales.
Shares were up by four cents to $51.51 after hours. The stock
has climbed 18% over the past three months.
Write to Nathalie Tadena at nathalie.tadena@dowjones.com
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