L Brands, Inc.LB posted a 9% increase in its comparable store sales (comps) for the five weeks ended Apr 4, 2015, which also fared better than analysts' expectations. Net sales for Mar 2015 increased 6% to $981.2 million from $923.7 million in the prior-year period.
Early Easter along with the company's operational efficiencies, together with its new and innovative collections, augmented sales in an otherwise challenging backdrop, marked by inclement weather and disturbance at the West Coast port facility. However, shares hardly witnessed any movement, inching up a mere 0.2% on the index since the announcement.
Back to the results, L Brands reported 9% growth in comps at both Victoria's Secret Stores, and Bath & Body Works. However, sales declined 2% at Victoria's Secret Direct.
For the nine-week period, net sales increased 7% to $1,787 million from $1,674 million in the year-ago period, while comps too grew 7%.
Apart from L Brands, The Gap Inc. GPS also posted an increase of 2% in comps for the month under review. However, retailers such The Buckle, Inc. BKE and Costco Wholesale Corporation COST saw their comps declining 0.5% and 2%, respectively, during the month.
L Brands currently carries a Zacks Rank #3 (Hold) and operates about 2,972 stores. It commands a market-leading position in the lingerie, personal care and beauty segments. We believe that the company's innovation in merchandise and exclusive assortments render it popular among its consumers, setting it apart from its peers. The company, with its operational efficiencies as well as new and innovative assortments, remains well positioned to capitalize on the same.