L Brands updates Q4 guidance as December sales disappoint
US apparel firm L Brands, known for its Victoria's Secret, Pink, and Bath & Body Works brands, reported on Wednesday positive comparable and net sales for December, but failed to pick up Victoria’s Secret sales during the holiday season.
The company reported net sales of $2.516 billion for the five weeks ended December 30, 2017, up 3 percent compared to the same period last year. Meanwhile, comparable sales increased 1 percent in December.
Though final results were offset by a 4 percent increase in Bath & body Works sales, Victoria’s Secret comparable sales still declined 1 percent. Minus the effects of online sales, Victoria’s Secret comparable store sales fell even steeper by 6 percent.
The Columbus, Ohio-based company’s comparable sales have been hit hard since its Victoria’s Secret brand exited the swim and apparel categories.
For the 48 weeks ended December 30, 2017, the company reported net sales of $11.592 billion, down from $11.769 billion. Comparable sales equally decreased 4 percent.
L brands said the exit of the swim and apparel categories had a negative impact of about 3 percentage points and 5 percentage points to total company and Victoria’s Secret comparable sales, respectively.
The company said it now expects fourth quarter earnings per share to be $2.00, which is at the low end of its previous guidance of $1.95 to $2.10.
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