L Brands falls after guidance update
Victoria’s Secret owner L Brands’ (LB) stock is sliding after management revised its 1Q18 profit expectations along with its monthly sales report earlier today.
The company posted a 4% YoY (year-over-year) increase in total sales to $751.6 million for the month ended May 5. Comparable sales for the period stood flat and were negatively impacted by around three percentage points from the Easter holiday.
For the first quarter of 2018, sales increased 8% YoY to $2.63 billion—better than analysts’ forecast of a 6.4% YoY jump to $2.59 billion. Same-store sales for the period improved around 3%, driven by an 8% jump in Bath & Body Works comps and a 1% increase in Victoria’s Secret comps.
What’s troubling investors?
The company, however, said it expects earnings per share to lie at the lower end of its 15 cents–20 cents guidance range. The announcement triggered a slide in L Brands’ already beaten-down stock.
Its share price tumbled around 10% to 30.74 by 10:45 EST. The company has already hit a six-year low.
L Brands is among the worst-performing apparel stocks this year. Its share price was down more than 43% YTD (year-to-date) as of yesterday. The company is slated to report its first-quarter results on May 23.