L Brands updates Q3 guidance on surprise October comps uptick
US apparel firm L Brands said on Wednesday total sales in October increased 5 percent, coinciding with a 2 percent increase in comparable store sales, well ahead of forecasts of a 1.7 percent decline.
Shares of the retailer jumped 9.4 percent in after-hours trading.
The Columbus, Ohio-based company said that total sales for the four-week period ending October 28 reached $794.1 million, compared to $756.7 million last year.
L Brands' lingerie darling Victoria’s Secret posted a 1 percent increase in comparable store sales, outpacing expectations of a 3.4 percent decline, while Bath & Body Works reported a 5 percent increase, surpassing forecasts of a 2.6 percent increase.
The firm said in a press release that Victoria’s Secret continued to be hurt by the exit of the swim and apparel categories, a move which cut overall comps by about 1 percent.
The company said it now expects third quarter earnings per share to be at the high end of its previous guidance of $0.25 to $0.30, and affiremd its previous full-year 2017 earnings guidance of $3.00 to $3.20 per share.
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