By John Kell
L Brands Inc.'s (LTD) fiscal second-quarter profit grew 25% as
the retailer reported higher same-store sales at Victoria's Secret
and Bath & Body Works.
Shares fell 1.4% to $59 in after-hours trading, as L Brands
raised its full-year view but issued an outlook for the current
quarter that missed Wall Street's expectations.
The company projected fiscal third-quarter earnings of 23 cents
to 28 cents a share, below the 29-cent estimate from analysts
surveyed by Thomson Reuters. L Brands now sees full-year profit
between $3.06 and $3.21 a share, up from the May view of $2.95 to
$3.15 a share.
The company, formerly called Limited Brands Inc., dominates the
intimate-apparel and personal-care markets, though growth for the
company's major store formats in the first half of the current
fiscal year has slowed from year-ago levels.
Though retailers have broadly been stung by weak mall traffic
and high promotions, some observers say L Brands has maintained
growth by winning over customers with new products.
For the period ended Aug. 3, L Brands reported a profit of
$178.9 million, or 61 cents a share, up from $143.6 million, or 49
cents a share, a year earlier. Prior-year results included a
penny-a-share charge tied to La Senza store closures.
The company earlier this month estimated earnings of about 60
cents a share, a rosier view than what the retailer issued in
May.
Gross margin was flat at 39.3%.
The company recently reported net sales jumped 5% to $2.52
billion and same-store sales rose 2%. Same-store sales grew 1% at
Victoria's Secret and 3% at Bath & Body Works.
Write to John Kell at john.kell@wsj.com
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