L Brands earnings fall, releases fourth quarter outlook
L Brands on Wednesday reported its third quarter results, which showed a continuation of sales growth for the company. Though net sales jumped 4% over the previous third quarter, earnings per share fell 24%.
Net sales were $2.581 billion and comparable sales increased 2%. Earnings per share were $0.42 compared to $0.55 in the prior year comparable period and net income fell to $121.6 million from $164.0 million. Operating income also decreased 16% to $283.6 million from $338.8 million.
Victoria’s Secret contributed $1,584.1 million in total sales over $1,567.5 million in the third quarter of 2015, but comparable sales fell 1% compared to increasing 6% in 2015.
Bath & Body Works comparable sales were flat at 7% and total sales increased to $770.2 million from $705.5 million.
Meanwhile, Victoria’s Secret is celebrating the 20th anniversary of its Victoria’s Secret Fashion Show with a show in Paris next month.
The runway show will air on CBS on December 5, 2016 just in time for holiday shopping.
Despite the timing of the show, L Brands expects its earnings per share to trend lower than 2015 and range between $1.85 and $2.00.
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