L Brands second-quarter sales dragged down by Victoria’s Secret
Despite a strong first quarter, L Brands second-quarter results fell short on Wednesday, as the company's struggling Victoria’s Secret brand continued to drag down overall sales.
The Columbus, Ohio-based company, which also owns Bath & Body Works, reported net sales of $2.902 billion for the quarter ended Aug. 3, 2019, compared to sales of $2.984 billion reported in the same quarter last year.
Comparable sales for the second quarter were down 1 percent, with comparable sales dropping 6 percent at Victoria’s Secret, while climbing 8 percent at Bath & Body Works.
For the second quarter, operating income was $174.6 million, compared to $228.1 million last year, and net income was $37.6 million compared to $99 million last year.
Victoria’s Secret sales have been dropping at an alarming rate for the last couple of years, due to its brand image that no longer resonates with its female audience.
Most recently, in an attempt to turn its image around, the brand hired Valentina Sampaio as its first transgender model. It has also been rethinking its annual fashion show, after criticism that the lingerie parade is sexist and out of touch with consumers.
The company is projecting a third quarter earnings per share result between -$0.05 and $0.05, it added.
The company also reiterated its guidance for 2019, confirming its full-year earnings per share are expected to sit between $2.30 to $2.60.
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