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L Brands (LB) Shares Higher on Q1 Earnings Beat, Strong Guidance

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Victoria’s Secret parent L Brands Inc. (LB - Free Report) just released its first quarter fiscal 2017 financial results, posting earnings of 33 cents per share and revenues of $2.437 billion. Currently, LB is a #3 (Hold) on the Zacks Rank, and is up 5.89% to $51.25 per share in trading shortly after its earnings report was released.

L Brands:

Beat earnings estimates. The company reported earnings of 33 cents per share, surpassing the Zacks Consensus Estimate of 29 cents per share.

Matched revenue estimates. The company saw revenues of $2.437 billion, falling in-line with our consensus estimate of $2.44 billion but decreasing 7% year-over-year.

Q1 operating income was $209.2 million, while net income came in at $94.1 million.

Comparable sales for the first quarter decreased 9%. This was due to the exit of the swim and apparel categories, which had a negative impact of 6 percentage points and 9 percentage points, respectively, to total company and Victoria’s Secret comparable sales.

Looking ahead, L Brands increased is guidance for full-year 207, and now expects earnings per share in the range of $3.10 to $3.40, up from previous forecast of $3.05 to $3.35. For Q2, the company expects earnings in the range of 40 cents to 45 cents per share.

Here’s a graph that looks at L Brands’ price, consensus, and EPS surprise:

L Brands, Inc. Price, Consensus and EPS Surprise

L Brands, Inc. Price, Consensus and EPS Surprise | L Brands, Inc. Quote

L Brands operates as a retailer of women's intimate and other apparel, beauty and personal care products and accessories primarily in the United States. Its brand includes Victoria's Secret, Victoria's Secret Pink, Bath & Body Works, La Senza and Henri Bendel. The company sells its product through franchise, license, wholesale partners, websites, catalogue, and other channels. L Brands Inc., formerly known as Limited Brands Inc., is headquartered in Columbus, Ohio.

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