For its most recent quarter, L Brands met market estimates on both revenue and earnings, with the topline increasing 8% year-over-year. However, earnings dropped 29% due to higher costs and the company lowered its guidance for the full year of 2018.
Tough competition in the retail segment has been affecting L Brands, which has been seeing weakness in particular in its PINK brand. The stock is down over 54% so far this year. Looking at the past one month, the stock is down 16%.
Meanwhile, based on a report by Reuters, US retail sales posted the smallest gain in six months in August as clothing and automobile purchases saw a drop. Retail sales were up 0.1% as opposed to an estimate of a 0.4% increase. Compared to last year, August retail sales rose 6.6%. Sales at clothing stores saw a 1.7% drop.