L Brands Inc. (NYSE: LB) is slated to report second quarter 2019 earnings results on Wednesday, August 21, after regular trading hours. Analysts have projected earnings of $0.19 per share on revenue of $2.96 billion.
L Brands has been struggling with slow sales in its Victoria’s Secret division and the company will need a new strategy in terms of assortment and marketing to revive the brand’s performance. The Bath & Body Works division has performed well, delivering consistent sales growth over the past couple of quarters. This trend is expected to continue in the second quarter.
While Bath & Body Works has posted double-digit comp sales growth consistently over the past few quarters, Victoria’s Secret has seen declines in comps. This is likely to continue in the second quarter as well. The weakness in Victoria’s Secret continues to weigh on the topline results. The company is also seeing higher expenses which is a cause of concern.
Earlier this year, L Brands closed all Henri Bendel stores and website and sold La Senza to an affiliate of the private equity firm Regent LP in order to focus more on its core segments.
Also see: L Brands Q2 2019 Earnings Conference Call Transcript
In the first quarter of 2019, L Brands beat revenue and earnings expectations. Net sales remained flat at $2.6 billion while EPS declined 18% to $0.14. Analysts had forecast revenue of $2.5 billion and earnings breakeven. Comp sales were flat.
For the second quarter of 2019, L Brands has guided for EPS of $0.15-0.20. For full-year 2019, the company raised its earnings outlook to a range of $2.30-2.60 from the previous range of $2.20-2.60.
L Brands’ shares have fallen 22% so far this year and 11% in the past three months. The majority of analysts have rated the stock as Hold and the average price target is $28.64.
Most Popular
Intensity Therapeutics is establishing a new field of localized cancer reduction: CEO
Intensity Therapeutics, Inc. (NASDAQ: INTS) is a clinical biotechnology company engaged in the discovery development, and commercialization of first-in-class cancer drugs that attenuate tumors with minimal side effects while training
INTU Earnings: Intuit Q1 2025 adj. profit rises on higher revenues
Financial technology company Intuit Inc. (NASDAQ: INTU) Thursday announced results for the first quarter of 2025, reporting a modest increase in adjusted earnings. The Mountain View-headquartered company’s first-quarter revenue came
Riding the AI wave, Nvidia looks set to stay on the high-growth path
After delivering strong results for the third quarter, Nvidia Corporation (NASDAQ: NVDA) this week said the launch of its new-generation Blackwell chip is on track. The company is thriving on