Victoria’s Secret Parent L Brands (LB) Q1 2021 Results
Shoppers walk past a Victoria’s Secret store in a San Diego, Calif., Mall on April 22, 2021.
Bing Guan | Bloomberg | Getty Images
Victoria’s Secret Parent Brands L On Wednesday, first-quarter earnings and sales beat analyst estimates, thanks to strong business momentum and more people paying top dollar for its products.
Its stock recently fell more than 1% in extended trading.
Here’s how the company did for the quarter ended May 1, compared to what analysts expected, based on a Refinitiv survey:
- Earnings per share: $ 1.25 adjusted vs. $ 1.21 expected
- Turnover: $ 3.02 billion against $ 3.01 billion expected
Net income was $ 276.6 million, or 97 cents per share, compared to a loss of $ 296.9 million, or $ 1.07 per share, a year earlier. Excluding one-off charges, L Brands gained $ 1.25 per share, exceeding the $ 1.21 forecast by analysts.
Total sales jumped more than 80% to $ 3.02 billion, from $ 1.65 billion a year earlier. This topped estimates by $ 3.01 billion.
Total comparable store sales increased 21% year over year, compared to a 4% increase a year ago.
By this fall, L Brands to divest its Victoria’s Secret business in his own publicly traded entity, and said he would not provide forecasts for the remainder of the year.
L Brands said the split would allow its two brands to better focus on growth and have more financial flexibility to adapt to an ever-changing sales landscape. He had considered a spin-off or a sale, but said the split was ultimately the best option for the company to get the highest value.
As of the market close on Wednesday, shares of L Brands have risen about 82% year-to-date. The company has a market capitalization of $ 18.8 billion.
This story is developing. Please come back for updates.