L Brands swings to profit
L Brands, Inc., the Columbus, Ohio-based owner of Victoria’s Secret and Bath & Body Works, announced net income of $330.58 million, or $1.17 per share, for the third quarter on Wednesday, as performances improved across its brands. In the prior-year period, the company reported a loss of $251.99 million, or $0.91 per share.
The group’s revenues for the third quarter ended October 31, 2020, totaled $3.06 billion, up 14.1% from $2.67 billion in the same period in the previous year. Comparable sales for the period increased 28%.
As usual Bath & Body Works led growth at the company, posting a quarterly comparable sales increase of 56%, up from an increase of 9% in Q3 in the previous year. However, comparable sales at the company’s Victoria’s Secret brand, which has struggled in recent years, also saw improvement, increasing 4%, compared to an 8% decline in the prior-year period.
“L Brands reported a record third quarter, driven by exceptional results and continued strength at Bath & Body Works, and a significant improvement in performance at Victoria’s Secret,” said L Brands CEO Andrew Meslow in a release.
Year to date, the company’s revenues decreased 14.4% year over year, falling from $8.21 million to $7.03 billion. Net loss for the nine-month period was $15.88 million, or $0.06 per share, compared to a loss of $174.14 million, or $0.63 per share, in the previous year.
“As we head into the holidays, our inventories are well-positioned, and we are encouraged by customers’ early response to our merchandise assortments,” added Meslow. “However, we are cautious about our ability to exceed last year’s fourth quarter sales and earnings results, given anticipated constraints on store traffic, online fulfillment and shipping capacity, as well as other uncertainties related to the Covid pandemic.”
In light of the ongoing uncertainty surrounding the coronavirus crisis, L Brands did not provide financial guidance for the fourth quarter or the full fiscal year.
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