L BRANDS PROVIDES COVID-19 RELATED UPDATE
17 March 2020 - 10:30PM
L Brands, Inc. (NYSE: LB) today announced a number of actions in
response to the continued spread of novel coronavirus (COVID-19).
Store Closures and Remote Work
With the wellbeing of its customers, associates
and communities as its top priority, and to help limit the spread
of the Coronavirus, L Brands will temporarily close all Bath &
Body Works, Victoria’s Secret and PINK stores in the United States
and Canada, effective March 17 through March 29, 2020.
Additionally, home office associates have been asked to work from
home if possible. All employees will continue to receive pay
and benefits during the temporary closure period. These
decisions will be re-evaluated as new information becomes available
regarding the COVID-19 pandemic. The company will continue to serve
customers through its direct channels, www.BathandBodyWorks.com and
www.VictoriasSecret.com.
Drawdown of Secured Revolving Credit
Facility
As previously disclosed, the company has access
to a Secured Revolving Credit Facility, which has an aggregate size
of $1 billion and expires in May 2024. In an abundance of
caution and as a proactive measure, on March 16, 2020, the company
elected to draw down $950 million from its Revolving Credit
Facility. After the drawdown, the company has more than $2 billion
in cash.
First Quarter 2020 Earnings Guidance Update
Due to the heightened uncertainty relating to
the potential impacts of COVID-19 on the company’s business
operations, including its duration and its impact on overall demand
for merchandise, the company is withdrawing the first quarter 2020
earnings guidance issued on Feb. 26, 2020. The company is not
providing an updated outlook at this time.
ABOUT L BRANDS:L Brands, through Victoria’s
Secret, PINK and Bath & Body Works, is an international
company. The company operates 2,920 company-owned specialty
stores in the United States, Canada, the United Kingdom and Greater
China, and its brands are also sold in more than 700 franchised
locations worldwide. The company’s products are also
available online at www.VictoriasSecret.com and
www.BathandBodyWorks.com.
Safe Harbor Statement Under the Private Securities
Litigation Reform Act of 1995We caution that any
forward-looking statements (as such term is defined in the Private
Securities Litigation Reform Act of 1995) contained in this press
release or made by our company or our management involve risks and
uncertainties and are subject to change based on various factors,
many of which are beyond our control. Accordingly, our future
performance and financial results may differ materially from those
expressed or implied in any such forward-looking statements. Words
such as “estimate,” “project,” “plan,” “believe,” “expect,”
“anticipate,” “intend,” “planned,” “potential” and any similar
expressions may identify forward-looking statements. Risks
associated with the following factors, among others, in some cases
have affected and in the future could affect our financial
performance and actual results and could cause actual results to
differ materially from those expressed or implied in any
forward-looking statements included in this press release or
otherwise made by our company or our management:
- the risk that the transactions contemplated by the Transaction
Agreement dated as of Feb. 20, 2020 between the company and SP VS
Buyer LP (the “Transaction”) is not consummated, including the risk
that required regulatory approvals for the Transaction may not be
obtained;
- diversion of our management’s attention away from other
business concerns due to the Transaction;
- the ongoing obligations of the company in connection with the
Transaction;
- general economic conditions, consumer confidence, consumer
spending patterns and market disruptions including severe weather
conditions, natural disasters, health hazards, terrorist
activities, financial crises, political crises or other major
events, or the prospect of these events;
- the seasonality of our business;
- the dependence on mall traffic and the availability of suitable
store locations on appropriate terms;
- our ability to grow through new store openings and existing
store remodels and expansions;
- our ability to successfully expand internationally and related
risks;
- our independent franchise, license and wholesale partners;
- our direct channel businesses;
- our ability to protect our reputation and our brand
images;
- our ability to attract customers with marketing, advertising
and promotional programs;
- our ability to protect our trade names, trademarks and
patents;
- the highly competitive nature of the retail industry and the
segments in which we operate;
- consumer acceptance of our products and our ability to manage
the life cycle of our brands, keep up with fashion trends, develop
new merchandise and launch new product lines successfully;
- our ability to source, distribute and sell goods and materials
on a global basis, including risks related to:
- political instability, significant health hazards,
environmental hazards or natural disasters;
- duties, taxes and other charges;
- legal and regulatory matters;
- volatility in currency exchange rates;
- local business practices and political issues;
- potential delays or disruptions in shipping and transportation
and related pricing impacts;
- disruption due to labor disputes; and
- changing expectations regarding product safety due to new
legislation;
- our geographic concentration of vendor and distribution
facilities in central Ohio;
- fluctuations in foreign currency exchange rates;
- stock price volatility;
- our ability to pay dividends and related effects;
- our ability to maintain our credit rating;
- our ability to service or refinance our debt;
- shareholder activism matters;
- our ability to retain key personnel;
- our ability to attract, develop and retain qualified associates
and manage labor-related costs;
- the ability of our vendors to deliver products in a timely
manner, meet quality standards and comply with applicable laws and
regulations;
- fluctuations in product input costs;
- our ability to adequately protect our assets from loss and
theft;
- fluctuations in energy costs;
- increases in the costs of mailing, paper and printing;
- claims arising from our self-insurance;
- liabilities arising from divested businesses;
- our ability to implement and maintain information technology
systems and to protect associated data;
- our ability to maintain the security of customer, associate,
third-party or company information;
- our ability to comply with regulatory requirements;
- legal and compliance matters; and
- tax, trade and other regulatory matters.
We are not under any obligation and do not intend to make
publicly available any update or other revisions to any of the
forward-looking statements contained in this press release to
reflect circumstances existing after the date of this press release
or to reflect the occurrence of future events even if experience or
future events make it clear that any expected results expressed or
implied by those forward-looking statements will not be
realized.
For further information, please contact:
L Brands: |
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Investor Relations |
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Media Relations |
Amie Preston |
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Tammy Roberts Myers |
(614) 415-6704 |
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(614) 415-7072 |
apreston@lb.com |
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communications@lb.com |
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