L Brands, Inc.
) rose 5.4% following impressive comparable-store sales
performance for the month of January that bettered analysts'
expectation. After a 2% increase registered in December, comps of
this specialty retailer of women's intimate and other apparel
rose 9% for the four-week period ended Feb 1, 2014.
However, net sales of this Zacks Rank #5 (Strong Sell) stock
witnessed a sharp drop of 25.9% to $731.2 million from $986.4
million in the prior-year period.
The holiday season was a tough one, while some make their way
out, others struggled to lure budget-constrained consumers.
Consumer spending environment was not very convincing, and
bargain hunters went from one shop to another to grab the best
deal. After a dismal holiday season, severe weather conditions
dampened consumers' spirit and restrained them from mall visits.
Despite these challenges, L Brands managed to deliver healthy
Other retailers that performed surprisingly well include
Costco Wholesale Corporation
The Gap, Inc.
) posting comparable-store sales growth of 4%, 2.9% and 1%,
Coming to Limited Brands, comparable-store sales for January
grew 10% at Victoria's Secret Stores & Victoria's Secret
Beauty, 6% at Bath & Body Works & The White Barn Candle
Co. and 4% at La Senza. However, sales declined 12% at Victoria's
For the 13-week period ended Feb 1, comparable-store sales
climbed 1% compared with the 5% jump experienced in the
prior-year period. Net sales for the period grew 1% to $3,818
million from $3,856 million in the year-ago period.
Management now projects total comparable-store sales ranging
from flat to the low-single-digits for February.
Limited Brands, which is slated to release fourth-quarter
fiscal 2013 results after the market closes on Feb 26, now
projects earnings to be marginally ahead of its earlier provided
guidance of $1.60 per share. The current Zacks Consensus Estimate
for the quarter is $1.61.
The company currently operates about 2,923 stores.
COSTCO WHOLE CP (COST): Free Stock Analysis
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L BRANDS INC (LB): Free Stock Analysis Report
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