Columbus, OH—L Brands Inc. (formerly Limited Brands Inc.) reported a 25% increase in its second quarter profit thanks to sales increases at its Victoria’s Secret and Bath & Body Works stores.
For the quarter ended August 3, L Brands posted a net profit of $178.9 million, or 61 cents a share, compared with a net profit $143.6 million, or 49 cents a share, in the year-ago period. (Prior-year results included a penny-a-share charge tied to La Senza store closures). That was one penny better than the 48 cents a share analysts’ had expected.
Net revenue rose 5% to $2.52 billion, matching analysts’ predictions. Total comparable store sales increased 2%.
Raises Full Year Forecast
By division, comp sales at Victoria’s Secret were up 1% and up 3% at Bath & Body Works. Gross margin remained flat at 39.3%.
For its third quarter, L Brands forecast earnings between 23 cents to 28 cents a share, below analysts’ estimate for 29 cents a share.
For its full year forecast, L Brands, which also owns Pink, Henri Bendel and La Senza, predicted earnings of $3.06 to $3.21 a share, up from its previous forecast for $2.95 to $3.15 a share.
Still, the company’s increase remains below that of analysts who expect $3.21 a share.