L Brands Up As Comps Surge - Analyst Blog

By
A A A

Shares of L Brands, Inc. ( LB ) 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 as Costco Wholesale Corporation ( COST ), The Gap, Inc. ( GPS ) and Zumiez, Inc. ( ZUMZ ) 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.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

ZUMIEZ INC (ZUMZ): Free Stock Analysis Report

COSTCO WHOLE CP (COST): Free Stock Analysis Report

GAP INC (GPS): Free Stock Analysis Report

L BRANDS INC (LB): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



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: ZUMZ , COST , GPS , LB

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

37,691,029
  • $100.0801 ▼ 1.53%
35,026,619
  • $16.72 ▼ 0.12%
33,952,263
  • $42.36 ▼ 0.45%
33,300,968
  • $13.70 ▲ 29.37%
28,270,749
  • $17.80 ▲ 7.62%
21,446,600
  • $75.4267 ▲ 1.14%
17,155,405
  • $98.95 ▲ 0.44%
16,393,910
  • $16.35 ▼ 0.24%
As of 9/16/2014, 12:07 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com