Interviews
COLUMBUS, Ohio, May 22, 2019 (GLOBE NEWSWIRE) L Brands, Inc. (NYSE: LB) today reported first quarter earnings results.
The company reported net sales of $2.629 billion for the first quarter ended May 4, 2019, compared to sales of $2.626 billion for the quarter ended May 5, 2018. Comparable sales for the first quarter ended May 4, 2019, were flat compared to the quarter ended May 5, 2018. First quarter comparable sales declined 5 percent at the Victoria’s Secret segment and increased 13 percent at Bath & Body Works.
Earnings per share for the first quarter ended May 4, 2019, were $0.14 compared to $0.17 for the quarter ended May 5, 2018. First quarter operating income was $153.3 million compared to $154.8 million last year, and net income was $40.3 million compared to $47.5 million last year.
The first quarter earnings per share result of $0.14 exceeded the company’s guidance of about breakeven, driven by record results at Bath & Body Works.
2019 Outlook
The company updated its guidance for 2019 full-year earnings per share to between $2.30 to $2.60 from $2.20 to $2.60 previously, and issued guidance for second quarter earnings per share between $0.15 and $0.20.
ABOUT L BRANDS:
L Brands, through Victoria’s Secret, PINK and Bath & Body Works, is an international company. The company operates 2,920 company-owned specialty stores in the United States, Canada, the United Kingdom and Greater China, and its brands are also sold in more than 650 franchised locations worldwide.
L BRANDS
FIRST QUARTER 2019
Comparable Sales Increase (Decrease) (Stores and Direct):
|
First Quarter 2019 |
First Quarter 2018 |
||||
| Victoria’s Secret1 | (5%) | 1% | |||
| Bath & Body Works1 | 13% | 8% | |||
| L Brands2 | 0% | 3% | |||
1 – Results include company-owned stores in the U.S. and Canada and direct sales.
2 – Results include company-owned stores in the U.S., Canada, the U.K. and Greater China and direct sales.
Comparable Sales Increase (Decrease) (Stores Only):
|
First Quarter 2019 |
First Quarter 2018 |
||||
| Victoria’s Secret1 | (7%) | (5%) | |||
| Bath & Body Works1 | 7% | 5% | |||
| L Brands2 | (3%) | (2%) | |||
1 – Results include company-owned stores in the U.S. and Canada.
2 – Results include company-owned stores in the U.S., Canada, the U.K. and Greater China.
Total Sales (Millions):
|
First Quarter 2019 |
First Quarter 2018 |
||||
| Victoria’s Secret1 | $ | 1,148.8 | $ | 1,235.9 | |
| Victoria’s Secret Direct | 362.1 | 353.5 | |||
| Total Victoria’s Secret | $ | 1,510.9 | $ | 1,589.4 | |
| Bath & Body Works1 | $ | 714.3 | $ | 648.6 | |
| Bath & Body Works Direct | 156.4 | 111.8 | |||
| Total Bath & Body Works | $ | 870.7 | $ | 760.4 | |
| VS & BBW International2 | $ | 135.0 | $ | 135.1 | |
| Other | $ | 112.2 | $ | 140.9 | |
| L Brands | $ | 2,628.8 | $ | 2,625.8 | |
1 – Results include company-owned stores in the U.S. and Canada.
2 – Results include retail sales from company-owned stores outside of the U.S. and Canada, direct sales in China, royalties associated with franchised stores and wholesale sales.
Total Company-Owned Stores:
| Stores | Stores | ||||||
| Operating | Operating | ||||||
| at 2/2/19 | Opened | Closed | at 5/4/19 | ||||
| Victoria's Secret U.S. | 957 | - | (35) | 922 | |||
| PINK U.S. | 141 | 1 | - | 142 | |||
| Victoria's Secret Canada | 39 | - | - | 39 | |||
| PINK Canada | 6 | - | - | 6 | |||
| Total Victoria’s Secret | 1,143 | 1 | (35) | 1,109 | |||
| Bath & Body Works U.S. | 1,619 | 14 | (3) | 1,630 | |||
| Bath & Body Works Canada | 102 | - | - | 102 | |||
| Total Bath & Body Works | 1,721 | 14 | (3) | 1,732 | |||
| Victoria’s Secret U.K./Ireland | 21 | - | - | 21 | |||
| PINK U.K. | 5 | - | - | 5 | |||
| Victoria’s Secret Beauty and Accessories | 38 | 2 | (2) | 38 | |||
| Victoria’s Secret China | 15 | - | - | 15 | |||
| Total International | 79 | 2 | (2) | 79 | |||
| Total L Brands Stores | 2,943 | 17 | (40) | 2,920 | |||
Total Noncompany-Owned Stores:
| Stores | Stores | |||||
| Operating | Operating | |||||
| at 2/2/19 | Opened | Closed | at 5/4/19 | |||
| Victoria’s Secret Beauty & Accessories – Travel Retail | 164 | 5 | (8) | 161 | ||
| Bath & Body Works – Travel Retail | 12 | 1 | - | 13 | ||
| Victoria’s Secret Beauty & Accessories | 219 | 2 | (4) | 217 | ||
| Victoria’s Secret | 47 | 3 | - | 50 | ||
| PINK | 9 | - | - | 9 | ||
| Bath & Body Works | 223 | 8 | (1) | 230 | ||
| Total | 674 | 19 | (13) | 680 | ||
| L BRANDS, INC. AND SUBSIDIARIES | ||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||
| THIRTEEN WEEKS ENDED MAY 4, 2019 AND MAY 5, 2018 | ||||||||||
| (Unaudited) | ||||||||||
| (In thousands except per share amounts) | ||||||||||
| 2019 | 2018 | |||||||||
| Net Sales | $ | 2,628,809 | $ | 2,625,846 | ||||||
| Costs of Goods Sold, Buying and Occupancy | (1,694,795) | (1,682,016) | ||||||||
| Gross Profit | 934,014 | 943,830 | ||||||||
| General, Administrative and Store Operating Expenses | (780,669) | (789,023) | ||||||||
| Operating Income | 153,345 | 154,807 | ||||||||
| Interest Expense | (98,897) | (97,899) | ||||||||
| Other Income | 6,152 | 1,401 | ||||||||
| Income Before Income Taxes | 60,600 | 58,309 | ||||||||
| Provision for Income Taxes | 20,345 | 10,792 | ||||||||
| Net Income | $ | |||||||||
