L Brands Reports October 2018 Sales; Updates Third Quarter Earnings Guidance
November 08 2018 - 07:15AM
Declares December 2018 Dividend
L Brands, Inc. (NYSE: LB) reported net sales of $860.5 million for
the four weeks ended Nov. 3, 2018, an increase of 8 percent,
compared to net sales of $794.1 million for the four weeks ended
Oct. 28, 2017. Comparable sales increased 4 percent for the
four weeks ended Nov. 3, 2018 compared to Nov. 4, 2017.
The company reported net sales of $2.775 billion
for the 13 weeks ended Nov. 3, 2018, an increase of 6 percent,
compared to net sales of $2.618 billion for the 13 weeks ended Oct.
28, 2017. Comparable sales increased 4 percent for the 13
weeks ended Nov. 3, 2018 compared to the 13 weeks ended Nov. 4,
2017.
The company reported net sales of $8.385 billion
for the 39 weeks ended Nov. 3, 2018, an increase of 7 percent,
compared to net sales of $7.809 billion for the 39 weeks ended Oct.
28, 2017. Comparable sales increased 3 percent for the 39
weeks ended Nov. 3, 2018 compared to the 39 weeks ended Nov. 4,
2017.
The company expects to report a third quarter
loss per share of approximately $0.17. The reported loss per
share includes a total charge of approximately $0.32 per share,
which consists of an approximate pretax cash charge of $20 million
related to the closure of its Henri Bendel business, and an
approximate pretax non-cash impairment charge of $80 million
related to certain Victoria’s Secret store assets. Excluding
these charges, the company expects adjusted third quarter earnings
per share to be approximately $0.15, compared to its previous
guidance of $0.00 to $0.05, principally driven by outperformance at
Bath & Body Works. The company will conduct its third
quarter earnings call at 9 a.m. Eastern on Nov. 20.
DividendThe company also announced the
declaration of its regular quarterly dividend of $0.60 per share
payable on Dec. 7, 2018 to shareholders of record at the close of
business on Nov. 23, 2018. This is the company’s 176th
consecutive quarterly dividend.
To hear further commentary provided on L Brands’
prerecorded October sales message, call 1-866-639-7583, or log onto
www.LB.com for an audio replay.
ABOUT L BRANDS:L Brands, through
Victoria’s Secret, PINK, Bath & Body Works, La Senza and Henri
Bendel, is an international company. The company operates
3,109 company-owned specialty stores in the United States, Canada,
the United Kingdom and Greater China, and its brands are sold in
more than 800 additional franchised locations worldwide. The
company’s products are also available online at
www.VictoriasSecret.com, www.BathandBodyWorks.com,
www.HenriBendel.com and www.LaSenza.com.
Safe Harbor Statement Under the Private Securities
Litigation Reform Act of 1995
We caution that any forward-looking statements (as such term is
defined in the Private Securities Litigation Reform Act of 1995)
contained in this press release or the October sales call or made
by our company or our management involve risks and uncertainties
and are subject to change based on various factors, many of which
are beyond our control. Accordingly, our future performance and
financial results may differ materially from those expressed or
implied in any such forward-looking statements. Words such as
“estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,”
“intend,” “planned,” “potential” and any similar expressions may
identify forward-looking statements. Risks associated with the
following factors, among others, in some cases have affected and in
the future could affect our financial performance and actual
results and could cause actual results to differ materially from
those expressed or implied in any forward-looking statements
included in this press release or the October sales call or
otherwise made by our company or our management:
- general economic conditions, consumer confidence, consumer
spending patterns and market disruptions including severe weather
conditions, natural disasters, health hazards, terrorist
activities, financial crises, political crises or other major
events, or the prospect of these events;
- the seasonality of our business;
- the dependence on mall traffic and the availability of suitable
store locations on appropriate terms;
- our ability to grow through new store openings and existing
store remodels and expansions;
- our ability to successfully expand internationally and related
risks;
- our independent franchise, license and wholesale partners;
- our direct channel businesses;
- our ability to protect our reputation and our brand
images;
- our ability to attract customers with marketing, advertising
and promotional programs;
- our ability to protect our trade names, trademarks and
patents;
- the highly competitive nature of the retail industry and the
segments in which we operate;
- consumer acceptance of our products and our ability to manage
the life cycle of our brands, keep up with fashion trends, develop
new merchandise and launch new product lines successfully;
- our ability to source, distribute and sell goods and materials
on a global basis, including risks related to:
- political instability, significant health hazards,
environmental hazards or natural disasters;
- duties, taxes and other charges;
- legal and regulatory matters;
- volatility in currency exchange rates;
- local business practices and political issues;
- potential delays or disruptions in shipping and transportation
and related pricing impacts;
- disruption due to labor disputes; and
- changing expectations regarding product safety due to new
legislation;
- our geographic concentration of vendor and distribution
facilities in central Ohio;
- fluctuations in foreign currency exchange rates;
- stock price volatility;
- our ability to pay dividends and related effects;
- our ability to maintain our credit rating;
- our ability to service or refinance our debt;
- our ability to retain key personnel;
- our ability to attract, develop and retain qualified associates
and manage labor-related costs;
- the ability of our vendors to deliver products in a timely
manner, meet quality standards and comply with applicable laws and
regulations;
- fluctuations in product input costs;
- our ability to adequately protect our assets from loss and
theft;
- fluctuations in energy costs;
- increases in the costs of mailing, paper and printing;
- claims arising from our self-insurance;
- our ability to implement and maintain information technology
systems and to protect associated data;
- our ability to maintain the security of customer, associate,
third-party or company information;
- our ability to comply with regulatory requirements;
- legal and compliance matters; and
- tax, trade and other regulatory matters.
We are not under any obligation and do not intend to make
publicly available any update or other revisions to any of the
forward-looking statements contained in this press release or the
October sales call to reflect circumstances existing after the date
of this press release or to reflect the occurrence of future events
even if experience or future events make it clear that any expected
results expressed or implied by those forward-looking statements
will not be realized. Additional information regarding these and
other factors can be found in Item 1A. Risk Factors in our 2017
Annual Report on Form 10-K.
For further information, please
contact:
L Brands: |
|
Investor Relations |
Media
Relations |
Amie Preston |
Tammy
Roberts Myers |
(614) 415-6704 |
(614)
415-7072 |
apreston@lb.com |
communications@lb.com |
L
BRANDSOCTOBER 2018 |
|
Comparable Sales Increase
(Decrease) (Stores and Direct): |
|
Oct.2018 |
|
Oct.2017 |
|
Third Quarter2018 |
|
ThirdQuarter2017 |
|
Year-to-Date2018 |
|
Year-to-Date2017 |
|
|
|
|
|
|
|
|
|
|
|
|
Victoria’s Secret1 |
0 |
% |
|
1 |
% |
|
(2 |
%) |
|
(4 |
%) |
|
(1 |
%) |
|
(11 |
%) |
Bath & Body Works1 |
11 |
% |
|
5 |
% |
|
13 |
% |
|
4 |
% |
|
10 |
% |
|
4 |
% |
L Brands2 |
4 |
% |
|
2 |
% |
|
4 |
% |
|
(1 |
%) |
|
3 |
% |
|
(6 |
%) |
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): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Oct.2018 |
|
Oct.2017 |
|
Third Quarter2018 |
|
ThirdQuarter2017 |
|
Year-to-Date2018 |
|
Year-to-Date2017 |
|
|
|
|
|
|
|
|
|
|
|
|
Victoria’s Secret1 |
(7 |
%) |
|
(4 |
%) |
|
(6 |
%) |
|
(5 |
%) |
|
(5 |
%) |
|
(9 |
%) |
Bath & Body Works1 |
7 |
% |
|
2 |
% |
|
10 |
% |
|
1 |
% |
|
8 |
% |
|
1 |
% |
L Brands2 |
(1 |
%) |
|
(2 |
%) |
|
0 |
% |
|
(3 |
%) |
|
(1 |
%) |
|
(6 |
%) |
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): |
|
|
|
|
|
|
|
|
|
Third Quarter 2018 |
|
Third Quarter 2017 |
|
Year-to-Date 2018 |
|
Year-to-Date 2017 |
|
|
|
|
|
|
|
|
Victoria’s Secret1 |
$ |
1,177.8 |
|
$ |
1,243.0 |
|
$ |
3,778.4 |
|
$ |
3,840.6 |
Victoria’s Secret Direct |
|
351.0 |
|
|
295.9 |
|
|
1,064.6 |
|
|
877.7 |
Total Victoria’s Secret |
$ |
1,528.8 |
|
$ |
1,538.9 |
|
$ |
4,843.0 |
|
$ |
4,718.3 |
Bath & Body Works1 |
$ |
808.3 |
|
$ |
703.1 |
|
$ |
2,281.1 |
|
$ |
2,044.6 |
Bath & Body Works Direct |
|
147.9 |
|
|
112.7 |
|
|
399.1 |
|
|
309.6 |
Total Bath & Body Works |
$ |
956.2 |
|
$ |
815.8 |
|
$ |
2,680.2 |
|
$ |
2,354.2 |
VS & BBW International2 |
$ |
134.0 |
|
$ |
114.9 |
|
$ |
414.6 |
|
$ |
332.1 |
Other |
$ |
155.9 |
|
$ |
148.2 |
|
$ |
446.8 |
|
$ |
404.7 |
L Brands |
$ |
2,774.9 |
|
$ |
2,617.8 |
|
$ |
8,384.6 |
|
$ |
7,809.3 |
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, royalties associated with
franchised stores and wholesale sales.
|
|
|
|
|
|
Total Company-Owned Stores: |
|
|
|
|
|
|
|
|
|
|
|
|
|
StoresOperating |
|
|
StoresOperating |
|
|
at 2/3/18 |
Opened |
Closed |
at 11/3/18 |
|
|
|
|
|
|
Victoria's Secret
U.S. |
|
984 |
1 |
(7 |
) |
978 |
PINK U.S. |
|
140 |
- |
- |
|
140 |
Victoria's Secret
Canada |
|
39 |
- |
- |
|
39 |
PINK Canada |
|
7 |
- |
(1 |
) |
6 |
Total Victoria’s
Secret |
|
1,170 |
1 |
(8 |
) |
1,163 |
|
|
|
|
|
|
Bath & Body Works
U.S. |
|
1,592 |
47 |
(17 |
) |
1,622 |
Bath & Body Works
Canada |
|
102 |
1 |
- |
|
103 |
Total Bath &
Body Works |
|
1,694 |
48 |
(17 |
) |
1,725 |
|
|
|
|
|
|
Victoria’s Secret
U.K./Ireland |
|
19 |
1 |
- |
|
20 |
PINK U.K. |
|
5 |
- |
- |
|
5 |
Victoria’s Secret
Beauty and Accessories |
|
29 |
4 |
(3 |
) |
30 |
Victoria’s Secret
China |
|
7 |
7 |
- |
|
14 |
Total
International |
|
60 |
12 |
(3 |
) |
69 |
|
|
|
|
|
|
Henri Bendel |
|
27 |
- |
(4 |
) |
23 |
La Senza U.S. |
|
5 |
6 |
- |
|
11 |
La Senza Canada |
|
119 |
- |
(1 |
) |
118 |
Total L Brands
Stores |
|
3,075 |
67 |
(33 |
) |
3,109 |
Total Noncompany-Owned
Stores: |
|
|
|
|
|
|
|
|
|
|
|
|
|
StoresOperating |
StoresOperating |
|
|
at 2/3/18 |
Opened |
Closed |
At 11/3/18 |
|
|
|
|
|
|
Victoria’s Secret Beauty & Accessories – Travel Retail |
|
156 |
21 |
(7 |
) |
170 |
Bath & Body Works – Travel Retail |
|
9 |
3 |
(2 |
) |
10 |
Victoria’s Secret Beauty & Accessories |
|
241 |
4 |
(18 |
) |
227 |
Victoria’s Secret |
|
32 |
10 |
- |
|
42 |
PINK |
|
5 |
3 |
- |
|
8 |
Bath & Body Works |
|
176 |
32 |
(2 |
) |
206 |
La Senza |
|
194 |
2 |
(10 |
) |
186 |
Total |
|
813 |
75 |
(39 |
) |
849 |
|
|
|
|
|
|
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