Victoria’s Secret Parent Company L Brands Sees Big Gains After Beating in Earnings

The parent company of Victoria’s Secret, L Brands, saw its shares surge 11% in after-hours trading on Wednesday after the company beat earnings expectations.

Traders were also thrilled to learn that the company has raised the low-end of its earnings forecast for 2019.

L Brands had a beat in both revenue and earnings expectations, helped by the strength of its Bath & Body Works
stores. Same-store sales at Victoria’s Secret continued to fall however, with the brand reporting a 5% drop.

For the quarter, L Brands reported earnings per share of 14 cents. This came in-line with estimates based on a survey of analysts by Refinitiv. Revenue at $2.63 billion was higher than the $2.56 billion that was expected.

Same-store sales were flat versus a 1.3% drop.

The company also said that it closed 35 and opened one company-owned Victoria’s Secret stores in the first quarter.

L Brands CEO Les Wexner earlier this month also sent an internal memo to employees saying Victoria’s Secret is “rethinking” its annual fashion show because network television is no longer the “right fit.”

Looking ahead, the company has raised the low-end of its earnings forecast for 2019 and now expects earnings to fall between $2.30 and $2.60 a share, up from its previous estimates of $2.20 and $2.60 per share.

Disclaimer: We have no position in L Brands Inc. (NYSE: LB) and have not been compensated for this article.