L Brands Inc. (NYSE: LB) released its fiscal first-quarter results after the markets closed on Wednesday. Despite decent quarterly results, it wasn��t enough to offset especially weak guidance. By the looks of it, the rest of 2018 won��t be any easier for this retailer.
The company posted $0.17 in earnings per share (EPS) on $2.63 billion in revenue, while consensus estimates from Thomson Reuters had called for $0.18 in EPS and $2.59 billion in revenue. The same period of last year reportedly had $0.33 in EPS on $2.44 billion in revenue.
During the quarter, comparable sales increased 3%, much better than the 9% decrease seen in last year��s first quarter. The latest increase consisted of Victoria��s Secret comps increasing only 1% but Bath & Body Works comps increasing 8%.
In terms of its segment sales, the company reported as follows:
Victoria��s Secret sales decreased 5% year over year to $1.59 billion. Bath & Body Works sales increased 5% to $760.4 million.Looking ahead to the 2018 fiscal full year, the company actually decreased its guidance. L Brands now expects to see EPS in the range of $2.70 to $3.00, down from the previously issued guidance of $2.95 to $3.25. The consensus estimates call for $3.14 in EPS and $13.1 billion in revenue for the year.
As for the second quarter, EPS is expected to be between $0.30 and $0.35. Consensus estimates are $0.45 in EPS and $2.89 billion in revenue.
Excluding Thursday��s move, L Brands has vastly underperformed the broad markets, with its stock down about 32% in the past 52 weeks. In just 2018 alone, the stock is down over 43%.
Shares of L Brands closed Wednesday at $34.05, with a consensus analyst price target of $44.83 and a 52-week trading range of $30.70 to $63.10. Following the announcement, the stock was down 5% at $32.30 in early trading indications Thursday.
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