Victoria’s Secret parent L Brands says holiday same-store sales rose 5%, offers upbeat profit outlook

Shoppers stand in line as they look forward to a Victoria’s Secret retailer to open on Black Friday, on the Tysons Corner Center, in Tysons, Virginia, November 27, 2020.

Hannah McKay | Reuters

Victoria’s Secret parent L Brands mentioned Thursday its same-store sales in the course of the holiday interval grew 5%, in contrast with a 3% drop a 12 months in the past, as customers purchased extra lounge put on, hand cleaning soap and candles forward of the brand new 12 months.

CEO Andrew Meslow mentioned the corporate’s holiday outcomes “significantly exceeded our initial expectations,” as efforts to chop again on promotions and promote extra merchandise at full worth paid off.

The retailer, which additionally owns Bath & Body Works, is now calling for fourth-quarter earnings to be between $2.70 and $2.80 per share. Analysts had been anticipating $1.96, in accordance with Refinitiv knowledge.

L Brands is concentrating on fourth-quarter income of $3.84 billion. Analysts had been calling for $4.74 billion.

The firm’s shares had been up greater than 5% in late-morning buying and selling, having surged greater than 150% over the previous 12 months.

For the nine-week interval ended Jan. 2, L Brands reported internet sales of $3.84 billion, down 1.8% from $3.91 billion for the comparable year-ago interval.

Within Victoria’s Secret, same-store sales — which monitor sales each on-line and in shops open for at the very least 12 months — fell 9% in the course of the holiday interval, with the metric dropping 23% at brick-and-mortar shops, due largely to mall visitors declining in the course of the Covid pandemic. The common worth spent on an merchandise at Victoria’s Secret was up, L Brands mentioned.

Same-store sales for Bath & Body Works had been up 17%, together with a 5% achieve in shops.

“Bath & Body Works continues to deliver record results, demonstrating the strength of the brand,” Meslow mentioned in a press release.

“The turnaround at Victoria’s Secret also continues to gain momentum, driven by an improved merchandise assortment and focused execution of retail fundamentals and our profit improvement plan,” he added.

L Brands is anticipated to report fourth-quarter earnings on Feb. 24.

Find the total holiday outcomes from L Brands right here.

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