L Brands, Inc.
) tumbled 8.2% following soft comparable-store sales performance
for March. After a 2% increase registered in February, comps of
this specialty retailer of women's intimate and other apparel
declined 1% for the five-week period ended Apr 5, 2014.
Management hinted that the shift in Easter timing this year hurt
the comparable stores sales performance of this Zacks Rank #3
(Hold) stock by 2 to 3 percentage points.
However, net sales climbed 3% to $923.7 million from $894.8
million in the prior-year period.
Most of the retailers continue to grapple with cold weather in
March that resulted in sluggish demand for spring merchandise.
Retailers are still reeling with margin pressure due to
promotional activities they undertook during a soft holiday
season followed by adverse weather conditions in January and
February. Moreover, a shift in Easter holiday to Apr 20 this year
compared with Mar 31 last year also subdued March sales.
Retailers such as
The Buckle Inc.
The Gap, Inc.
) saw their comparable-store sales declining 1.8%, 6% and 2.9%,
respectively during March.
Coming to L Brands, comparable-store sales for March fell 1%
at Victoria's Secret Stores & Victoria's Secret Beauty and 2%
at Bath & Body Works & The White Barn Candle Co. Sales
inched up 1% at Victoria's Secret Direct.
For the nine-week period ended Apr 5, 2014 net sales increased
4% to $1.674 billion from $1.607 billion in the year-ago period,
while comparable-store sales remained flat for the said
With Easter falling in April this year compared with March
last year, management anticipates comparable-store sales for
April to be up in the mid-single digits. Comps for the combined
March/April period are projected to increase in the low
L Brands currently operates about 2,917 stores.
BUCKLE INC (BKE): Free Stock Analysis Report
GAP INC (GPS): Free Stock Analysis Report
L BRANDS INC (LB): Free Stock Analysis Report
ZUMIEZ INC (ZUMZ): Free Stock Analysis Report
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