Earnings Details
L Brands shares rose in after-hours trading after the retailer reported better-than-expected results for the second quarter.
The Columbus, Ohio-based company has faced headwinds in recent years as the strength of its Bath & Body Works business couldn’t overcome the sagging sales of its Victoria’s Secret chain. Throw in the effects of the coronavirus pandemic, which caused L Brands (ticker: LB) to close many of its stores in accordance with stay-at-home orders, and the outlook became even drearier.
But results during the last quarter were better than feared, as most of its stores in North America have reopened. Revenue came in at $2.3 billion—a 20% drop from a year earlier—but better than the $2.2 billion Wall Street expected.
When adjusted for a noncash impairment charge of its Victoria’s Secret brand and other restructuring costs, LBrands posted earnings of 25 cents a share, well ahead of the 42 cent loss the Street had forecast. Without the adjustments, the company posted a loss of 18 cents a share, compared with earnings of 14 cents a share a year earlier.
Source Barrons