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Victoria's Secret Parent L Brands Beats Earnings, Stock Tanks on Weak Guidance

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L Brands (LB - Free Report) just released its second quarter fiscal 2017 earnings results, posting earnings of $0.48 per share and revenue of $2.755 billion. Currently, L Brands has a Zacks Rank #3 (Hold), and it is down 7.81% to $36.46 in after-hours trading shortly after its earnings report was released.

L Brands:                                 

Beat earnings estimates.The company posted adjusted earnings of $0.48 per share, beating our Zacks Consensus Estimate of $0.45. L Brands’ earnings decreased 31.4% year-over-year.

Missed revenue estimates.The company saw revenue figures of $2.755 billion, just missing our estimate of $2.76 billion. Revenue decreased year-over-year by 4.7% from $2.890 billion.  

L Brands reported a comparable sales decrease of 8%. The exit of the swim and apparel categories from Victoria’s Secret stores had a negative impact on the total company’s comparable sales by 6%.

Looking ahead, L Brands has lowered its guidance from $3.10 to $3.40 to $3.00 to $3.20 for 2017 full-year earnings. The company expects to earn between $0.25 and $.30 per share in the third quarter.

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, Inc. 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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