Victoria's Secret Sales Fall 7% -- Update
22 August 2019 - 7:49AM
Dow Jones News
By Patrick Thomas
L Brands Inc.'s revenue fell in its latest quarter as sales at
the retailer's embattled flagship Victoria's Secret chain declined
further.
The Columbus, Ohio-based retailer reported net sales of $2.9
billion for its second quarter, compared with $2.98 billion a year
earlier. Analysts polled by FactSet predicted $2.95 billion in
revenue.
Comparable sales, which include digital and same-store sales,
decreased 1% from the same period a year earlier.
Victoria's Secret sales fell 7% to $1.61 billion from a year
earlier, below the $1.67 billion in sales analysts were
expecting.
Overall, L Brands, which also owns Bath & Body Works, posted
a profit of $37.6 million, or 14 cents a share, compared with $99
million, or 36 cents a share, a year ago.
The company reported adjusted earnings of 24 cents a share.
Analysts polled by FactSet were expecting earnings of 20 cents a
share, or 20 cents a share on an adjusted basis.
Shares of L Brands ticked up about 1% during aftermarket
trading. The company reaffirmed its adjusted earnings outlook for
the year of between $2.30 and $2.60 a share.
The founder and chief executive of L Brands, Leslie Wexner, has
come under increased scrutiny in recent months for his ties to
Jeffrey Epstein, the disgraced financier who was indicted on
federal sex-trafficking charges stemming from an alleged scheme to
exploit underage girls.
Mr. Epstein was Mr. Wexner's personal money manager for about
two decades. Mr. Epstein had pleaded not guilty in the case. He was
found dead in a Manhattan jail cell Aug. 10, while awaiting trial.
A medical examiner determined the cause of death was suicide.
Mr. Wexner said this month that his former money manager
misappropriated more than $46 million of his fortune, revealing for
the first time some of the financial fallout from their
relationship.
L Brands' board of directors has also hired an outside law firm
to conduct a review of Mr. Epstein's role at the company.
Meanwhile, L Brands said earlier this month that its longtime
chief marketing officer, Edward Razek, will step down from his
role, as the parent company of Victoria's Secret faces backlash
from consumers about the unit's marketing strategy.
Write to Patrick Thomas at Patrick.Thomas@wsj.com
(END) Dow Jones Newswires
August 21, 2019 17:34 ET (21:34 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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