L Brands, Inc.
) advanced 1.7% following comparable-store sales results for May,
the four weeks ended May 31, 2014, that bettered analysts'
expectations. Comps of this specialty retailer of women's intimate
and other apparel moved up 3%.
However, it is to be noted that the rate of growth decelerated
from 8% attained in April that benefited from the Easter holiday.
Net sales for the month of May climbed 4% to $763.6 million from
$737 million in the prior-year period.
Most of the retailers benefited during the month under review,
as favorable weather conditions, aggressive promotional strategies
and improving job prospects were enough to lure consumers.
Retailers struggled with dampened sales in the first three months
of the year as the harsh weather locked consumers indoor. April
sales improved and the upswing continued in May too. Retailers such
Costco Wholesale Corporation
The Gap, Inc.
) saw their comparable-store sales increasing 6%, 1% and 3.6%,
respectively during May.
Coming to L Brands, comparable-store sales for May rose 2% at
Victoria's Secret Stores & Victoria's Secret Beauty and 5% at
Bath & Body Works & The White Barn Candle Co. Sales
declined 10% at Victoria's Secret Direct.
For the 17-week period ended May 31, 2014, net sales increased
5% to $3.155 billion from $3.005 billion in the year-ago period,
while comparable-store sales climbed 2%.
L Brands, which currently carries a Zacks Rank #3 (Hold) and
operates about 2,928 stores, now anticipates low-single-digit comp
increase for the month of June.
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