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.
- 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.”
- 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.