Victoria’s Secret parent L Brands on Wednesday reported Quarter 1 earnings and sales that topped analysts estimates, driven by momentum across its business and more people paying full price for its products. Its stock was recently down more than 1% in extended trading.
Company’s Earnings per share $1.25 adjusted which is $1.21 expected. Revenue is $3.02 billion which is more than $3.01 billion expected. Net income rose to $276.6 million, or 97 cents per share, compared with a loss of $296.9 million, or $1.07 per share, a year earlier. L Brands earned $1.25 per share, beating the $1.21 that analysts were forecasting.
Total sales surged more than 80% to $3.02 billion from $1.65 billion a year earlier. That topped estimates for $3.01 billion. Total same-store sales were up 21% year over year, compared with a 4% increase in the year-ago period. Same-store sales at Victoria’s Secret rose 25%, compared with a 15% drop a year earlier. Same-store sales at Bath & Body Works climbed 16%, compared with a 41% jump a year earlier, when many consumers were stocking up on hand sanitizers at the onset of the Covid pandemic.
The company said that they are beginning to tell the story of our brand repositioning through our marketing.Victoria’s Secret had long held a dominant market share in the lingerie industry but had fallen out of favor due to its overtly sexy marketing that shunned certain body types.For the second quarter, L Brands is calling for adjusted earnings per share in a range of 80 cents to $1. Analysts had been looking for 76 cents per share, according to Refinitiv. It projects second-quarter sales will rise between 10% and 15% from 2019 levels. As of Wednesday’s market close, the brand’s shares are up about 82% year to date. The company has a market cap of $18.8 billion.