L Brands, Inc.
) posted comparable-store sales increase of 8% for the four-week
period ended Nov 2, 2013 that betters analysts' expectations and
rose sharply from 3% growth attained in the prior-year period.
This specialty retailer of women's intimate and other apparel,
beauty and personal care products showcased an 11.4% rise in net
sales of $680.5 million from $611 million in the prior-year
On the whole, retailers came up with better sales results for
the month of October, amid an environment that grappled with a
16-day government shutdown, an uncertain economic recovery and
soft job opportunities. Retailers spent more on promotions and
came up with lucrative discounts to drive traffic. However, heavy
discounts raise concerns about margins.
Stein Mart Inc.
) impressed analysts by posting a 5.4% rise in comps, while
The Gap, Inc.
), witnessed a 4% increase in comps.
Costco Wholesale Corporation
), the warehouse club operator, reported comps growth of 3% for
the month of October.
Coming to Limited Brands, comparable-store sales for October
rose 10% at Victoria's Secret Stores & Victoria's Secret
Beauty and 4% at Bath & Body Works & The White Barn
Candle Co. but fell 2% at La Senza. Sales tumbled 7% at
Victoria's Secret Direct.
For third-quarter fiscal 2013, comparable-store sales
increased 3%, whereas net sales rose 6% to $2,171.1 million from
$2,050.2 million in the year-ago period.
Management now projects total comparable-store sales to
decline in the low single-digits for the month of November as
Thanksgiving Day falls one week later in 2013. For the fourth
quarter comps are expected to increase in the low
Limited Brands, which operates 2,876 stores, holds a Zacks
Rank #3 (Hold). The company, which is slated to reports its
third-quarter fiscal 2013 earnings results on Nov 20, now
anticipates earnings to dovetail with the upper end of its
previously provided guidance range of 23 cents to 28 cents. The
current Zacks Consensus Estimate for the quarter is 27 cents a
COSTCO WHOLE CP (COST): Free Stock Analysis
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