December 9, 2023

Shoppers walk past a Victoria’s Secret store in a mall in San Diego, Calif., On April 22, 2021.

Bing Guan | Bloomberg | Getty Images

Victoria’s secret parent company L Brands reported first-quarter earnings and sales that beat analysts’ estimates on Wednesday.

The stock recently fell more than 1% in extended trading.

Here’s how the company performed for the quarter ended May 1, compared to analyst expectations based on a refinitive survey:

  • Earnings per share: $ 1.25 adjusted versus $ 1.21 expected
  • Revenue: $ 3.02 billion versus $ 3.01 billion expected

Net income rose to $ 276.6 million, or 97 cents per share, compared to a loss of $ 296.9 million, or $ 1.07 per share, last year. With no one-time expense, L Brands earned $ 1.25 per share, beating analysts’ forecast $ 1.21.

Total revenue increased more than 80% from $ 1.65 billion a year ago to $ 3.02 billion. That surpassed the estimates for $ 3.01 billion.

Total revenue in the same store increased 21% year over year, compared to a 4% increase in the same period last year.

At Victoria’s Secret, sales in the same store rose 25%, compared to a 15% decrease last year. While sales in the same store at Bath & Body Works rose 16%, compared to a 41% increase last year when many consumers stocked up on hand sanitizer to stay clean at the start of the Covid pandemic.

By the fall, L Brands will spin off its Victoria’s Secret business into its own publicly traded company and said it would not make a forecast for the rest of the year.

For the second quarter, adjusted earnings per share in a range of 80 cents to $ 1 is required. According to Refinitiv, analysts were looking for 76 cents per share. L Brands did not announce any sales prospects for the period.

According to L Brands, the split will allow both brands to focus more on growth and have greater financial flexibility to adapt to a changing retail landscape. It had either considered a spin-off or a sale, but said the spin-off was the best option for the company to achieve the highest value.

At the close of trading on Wednesday, L Brands shares were up around 82% since the start of the year. The company has a market capitalization of $ 18.8 billion.

The full press release from L Brands can be found here.

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