L Brands (LB) reports fourth quarter 2019 earnings

Pedestrians wander past a Victoria’s Key store, a subsidiary of L Brand names, in New York.

Craig Warga | Bloomberg | Getty Photographs

L Models described earnings and profits for the holiday getaway quarter that topped analysts’ expectations, as it prepares to acquire it Victoria’s Mystery lingerie business enterprise private.

Its shares were being reasonably unchanged in just after-hrs buying and selling on the information.

L Models had earlier this yr lower its earnings outlook for the fourth quarter immediately after reporting weak 2019 holiday gross sales.

It reported Victoria’s Secret’s identical-keep revenue, which include on line, shrank 10% throughout the fourth quarter. Its Tub & Body Is effective division, meantime, described similar-shop sales progress of 10%.

All round, L Brands’ exact same-shop revenue dropped 2% all through the vacation quarter. L Brands’ exact-store gross sales were being down 1% for the yr, in comparison with a 3% leap in 2018.

Here’s how the corporation did for the quarter finished Feb. 1, when compared with what analysts have been anticipating, centered on Refinitiv details:

  • Earnings for each share: $1.88, modified, vs. $1.86 anticipated
  • Revenue: $4.71 billion vs. $4.69 billion expected

L Brands swung to a internet loss of $192.3 million, or 70 cents a share, in the course of the fourth quarter, from earnings of $540.1 million, or $1.94 per share, a yr back. Excluding just one-time things, L Brands attained $1.88 for every share, topping estimates of $1.86 a share, described by Refinitiv.

Gross sales fell to $4.71 billion from $4.85 billion a calendar year ago. Analysts were contacting for the enterprise to report profits of $4.69 billion.

The earnings report arrives on the heels of L Manufacturers announcing before this month that private fairness company Sycamore Associates will purchase acquire a 55% stake in Victoria’s Top secret from its proprietor for $525 million. Upon the close of the offer, L Brands’ founder, 82-yr-previous Les Wexner, is also set to move down as its chairman and CEO.

The corporations reported the transaction is anticipated to near in the next quarter.

The new L Makes has stated it aims to “sharpen its target” on Bathtub & Human body Functions, functioning these outlets as a different company. The division that sells candles and lotions has been dragged down by L Brands’ below-executing bra and underwear business enterprise.

L Models mentioned Wednesday it expects to report an modified loss all through the to start with quarter of about 5 cents per share, though analysts had been calling for a income of 10 cents. It explained it is not providing a complete-yr outlook due to its pending transaction with Sycamore. But it explained its to start with-quarter forecast incorporates its Victoria’s Top secret small business.

L Manufacturers is expected to maintain a meeting call Thursday morning, at 9 a.m. ET, to focus on the fourth-quarter and complete-year results.

L Manufacturers shares closed Tuesday down about 3%. The inventory has fallen more than 15% above the past 12 months. L Manufacturers has a sector worth of $6.3 billion.

Study the comprehensive push launch right here.

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