Will L Brands’ Comparable Store Sales Growth Be a Major Driver?
By Mark JonkerUpdated
Net sales growth
L Brands (LB) has seen impressive top-line growth. A major reason for the growth has been its comparable store sales growth. It’s not wrong to say that for any retailer (XRT) (XLY), top-line growth fueled by organic growth is a highly positive sign for its future performance.
L Brands (LB) had a 4.0% comparable store sales growth in fiscal 2Q15. In the last five years, it has averaged a 6.0% comparable store sales growth annually, as you can see in the graph below.
What’s been providing organic growth?
L Brands’ strong brand recognition has been a driver for its growing comparable sales. Victoria’s Secret and Bath and Body Works have a lot of loyal customers. Their innovation and newness in the assortment of goods have been increasing their dollar sales period-over-period.
The company recently estimated comparable sales for October for both its leading brands to be around 5% on a year-over-year basis. It has estimated September comparable sales to grow by 9.0%. It was a solid 6.0% in August.
