People stroll previous a Victoria’s Secret retailer in Barcelona.
John Milner | LightRocket | Getty Images
Victoria’s Secret guardian L Brands shares rallied Thursday after it raised its quarterly outlook, saying it had robust gross sales in January, and reiterated plans to separate its companies.
It additionally introduced longtime CFO Stuart Burgdoerfer’s plans to retire in August. A search is underway for his substitute.
Burgdoerfer had been serving as interim CEO of the lingerie retailer, and might be instantly get replaced in that position by Martin Waters, who’s presently CEO of Victoria’s Secret Lingerie.
The firm elevated its fourth-quarter earnings steering from $2.70 to $2.80 per share to $2.95 to $3.00 per share. It mentioned it expects same-store gross sales to enhance by 10% within the quarter, which features a 22% enhance at Bath & Body Works and a 3% drop at Victoria’s Secret.
Shares had been up greater than 9% Thursday morning, after touching a 52-week excessive of $48.41 in buying and selling earlier within the day. They’ve risen about 85% over the previous 12 months, bringing the corporate’s market worth to $13.35 billion.
L Brands mentioned it plans to separate its two manufacturers, Victoria’s Secret and the faster-growing Bath & Body Works, by August.
In a information launch, the corporate mentioned its board obtained updates from its monetary advisors, Goldman Sachs and JPMorgan, at a January assembly, and is contemplating a derivative of Victoria’s Secret right into a public firm or the sale of the enterprise.
L Brands struck a deal to promote Victoria’s Secret final 12 months, but it surely fell aside. Private fairness agency Sycamore Partners agreed to purchase the bulk stake in Victoria’s Secret for $525 million, a transfer that might have taken the model non-public. It was scrapped in May, nevertheless, because the pandemic quickly shuttered shops and added to Victoria’s Secret’s challenges.
The firm has been going by means of a reorganization because it tries to stabilize its flagship model. It’s benefited from robust gross sales at its different retail chain, Bath & Body Works, throughout the pandemic, as Americans fill up on cleaning soap and hand sanitizer.
Last month, it reported a stronger-than-expected vacation season, with same-store gross sales rising 5% for the 9 weeks ended Jan. 2, as consumers purchased pajama pants and candles. Its same-store gross sales dropped 3% throughout the comparable nine-week interval a 12 months prior.
The firm will report its fourth-quarter earnings outcomes on Feb. 24.