May 22, 2019
Victoria’s Secret owner inspires confidence with sales outlook boost
Bloomberg News
,L Brands Inc. (LB.N) rose in late trading after the company boosted the lower end of its full-year guidance as its Bath & Body Works brand continues to log double digit sales growth.
- Same store sales at Bath & Body Works rose 13 per cent. Comparable sales at L Brands, including both in-store and direct-to-consumer sales, was flat last quarter, dragged down by weaker results at Victoria’s Secret.
Key Insights
- While its beauty and skin care chain is going gangbusters, its Victoria’s Secret chain is still struggling. Its same store sales fell 5 per cent in the quarter. Still, investors may be hopeful change is afoot: The company recently said it would change the way it does its annual fashion show, suggesting its open to criticism and change after years losing market share to upstarts.
- In one recent strategy shift, L Brands founder Les Wexner said this month that Victoria’s Secret star-studded annual fashion show will no longer air on TV. He said the retailer would focus on “developing exciting and dynamic content and a new kind of event.”
Market Reaction
- The shares rose as much as 15 per cent in after-hours trading. They had slumped 16 per cent this year through Wednesday’s close.