The Columbus-based retailer L Brands (LB) reported a 7.7% increase in net sales, while earnings plunged almost 50% year-over-year to $47.5 million in the first quarter. Earnings came in at $0.17 per share, down from $0.33 a year ago.
Comparable sales for the owner of Victoria’s Secret, PINK, and Bath & Body Work brands jumped 3% compared to last year. L Brands has been facing the negative impact of e-commerce growth on brick and mortar retailers. Victoria’s Secret’s store sales have been on the downtrend and the company has been struggling to keep it in line with customer expectations.
On a brand basis, Victoria’s Secret narrowed its comp sale decline to 5% from a 12% decline last year. First-quarter sales declined marginally by 0.8% at the lingerie chain to $1.2 billion. At PINK, the company saw its second consecutive month of negative comp sales in April. The brand has been trying to succeed on its initiatives by promotions and discounts but all in vain, gaining little success. At Bath & Body Work, comp sales witnessed 5% growth.
Earlier this month, the company had lowered its full-year 2018 EPS outlook to $2.70 to $3.00 from $2.95 to $3.25. For the second quarter, the company expects earnings per share to come in between $0.30 and $0.35.
The shares of L Brands have declined 32% year-to-date, while since January it has plunged more than 43%. The stock tumbled further and dropped as much as 6% post the earnings release today on weak guidance.