L Brands, Inc.
) were moderately up by 0.5% following better-than-expected
comparable-store sales performance for February. However, it is
to be noted that the comparable-store sales growth rate of this
Zacks Rank #4 (Sell) stock decelerated sharply on a sequential
basis. After a 9% increase registered in January, comps of this
specialty retailer of women's intimate and other apparel rose 2%
for the four-week period ended Mar 1, 2014.
Net sales climbed 5.2% to $750 million from $712.7 million in
the prior-year period.
The ice storms due to the polar vortex, which hit a major part
of the U.S. in January and February, prevented shoppers from
venturing outdoors and consequently, hurt the business of
retailers. However improved weather in late February coupled with
government's tax refunds helped some retailers to emerge
strongly, such as
Costco Wholesale Corp.
) both of which posted comps growth of 2%.
Coming to L Brands, comparable-store sales for February grew
2% at Victoria's Secret Stores & Victoria's Secret Beauty and
1% at Bath & Body Works & The White Barn Candle Co. Sales
inched up 1% at Victoria's Secret Direct.
With Easter falling in April this year compared with last
year, management anticipates comparable-store sales for March to
be negatively impacted and to range between flat to the
low-single digits. However, comps for the combined March/April
period are projected to increase in the low single-digit
L Brands, which competes with
The Gap, Inc.
), currently operates about 2,919 stores.
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