L Brands reports drop in Q4 FY'14 EPS

27 Feb '14

3 min read

L Brands, Inc. reported 2013 fourth quarter and full-year results.

Fourth Quarter results:

Earnings per share for the 13-week fourth quarter ended Feb. 1, 2014, were $1.65 compared to adjusted earnings per share of $1.76 for the 14-week fourth quarter ended Feb. 2, 2013. Adjusted earnings per share for the prior year on a 13-week basis were approximately $1.68.

Fourth quarter operating income was $863.5 million (13 weeks) compared to an adjusted $907.8 million last year (14 weeks). Excluding the extra week last year, operating income dollars were roughly flat year over year. Net income was $489.6 million (13 weeks) compared to an adjusted $519.2 million last year (14 weeks).

Including the significant items in 2012 below, reported fourth quarter earnings per share were $1.65 (13 weeks) compared to $1.39 last year (14 weeks); operating income was $863.5 million (13 weeks) compared to $787.8 million last year (14 weeks); and net income was $489.6 million (13 weeks) compared to $411.4 million last year (14 weeks).

Significant items are as follows:

- In 2012 (totaling to a charge of $0.37 per share):

- A pre-tax, non-cash charge of $93.2 million, or $0.31 per share, related to intangible asset impairment at La Senza; and

- A pre-tax, non-cash charge of $26.9 million, or $0.06 per share, related to store fixed asset impairment at Henri Bendel.

- Comparable store sales for the 13-week fourth quarter ended Feb. 1, 2014, increased 1% compared to the 13 weeks ended Feb. 2, 2013. Net sales were $3.818 billion for the 13-week fourth quarter ended Feb. 1, 2014, compared to $3.856 billion for the 14 weeks ended Feb. 2, 2013.

Full-Year Results

Earnings per share for the 52-week year ended Feb. 1, 2014, were $3.05 compared to adjusted earnings per share of $2.92 for the 53-week year ended Feb. 2, 2013. Earnings per share for the full year increased 7% compared to adjusted earnings per share for the prior year on a 52-week basis of approximately $2.84.

Operating income was $1.743 billion (52 weeks) in 2013 compared to adjusted operating income of $1.707 billion in 2012 (53 weeks). Excluding the extra week last year, operating income dollars increased by approximately 5% for the full year 2013. Net income was $903.0 million (52 weeks) compared to adjusted net income of $866.7 million in 2012 (53 weeks).

Including significant items, reported 2013 52-week full-year earnings per share were $3.05 compared to $2.54 for the 53-week 2012; operating income was $1.743 billion (52 weeks) compared to $1.573 billion in 2012 (53 weeks); and net income was $903.0 million (52 weeks) compared to $753.0 million in 2012 (53 weeks).

Click here to view full results.

L Brands

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