L Brands Shares Drop Marginally on Lower Comps - Analyst Blog


Shares of L Brands, Inc. ( LB ) hardly reacted to the disappointing November comparable-store sales performance. Comps declined 5% for the four-week period ended Nov 30, 2013 compared with a 5% increase in the year-ago period. However, shares dropped just 0.1% since the announcement of the news. It seems that investors have already factored in the tough holiday season. 

This specialty retailer of women's intimate and other apparel, beauty and personal care products showcased a 7.2% rise in net sales of $988.5 million from $922 million in the prior-year period.

Early-hour store openings, huge discounts, promotional activities and free shipping on online purchases were not enough to drive in cautious, budget-constrained consumers to the shop.

Costco Wholesale Corporation ( COST ) came out with November comparable-store sales results that fell short of analysts' expectations. The company delivered comparable-store sales growth of 2%. Comps for The Buckle, Inc. ( BKE ), the retailer of casual apparels, footwear and accessories dropped 0.6%, while Zumiez, Inc. ( ZUMZ ), specialty retailer of action sports related apparel, footwear and accessories, posted lower-than-expected comps growth of 1.7%.

Coming to Limited Brands, comparable-store sales for November fell 3% at Victoria's Secret Stores & Victoria's Secret Beauty and 7% at Bath & Body Works & The White Barn Candle Co. but remained flat at La Senza. Sales rose 9% at Victoria's Secret Direct.

For the 43-week period ended Nov 30, comparable-store sales climbed 2% compared with the 7% jump registered in the prior-year period. Net sales for the period grew 6% to $7,944 million from $7,525 million in the year-ago period.

Management now projects total comparable-store sales to increase in the low to mid-single digits for the month of December.

Limited Brands, which operates 2,933 stores, holds a Zacks Rank #3 (Hold).

BUCKLE INC (BKE): Free Stock Analysis Report

COSTCO WHOLE CP (COST): Free Stock Analysis Report

L BRANDS INC (LB): Free Stock Analysis Report

ZUMIEZ INC (ZUMZ): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: BKE , COST , LB , ZUMZ



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