Markets

L Brands' (LB) October Comps Grow Y/Y; Raises Q3 Outlook

An image of a pen, a tablet and a calculator
Credit: Shutterstock photo

L Brands, Inc.LB reported better-than-expected comparable-store sales (comps) results in October. Comps for the four-week period ended Oct 31, 2015 improved 5% year over year, subsequent to the 9% growth in September. Net sales for the month under review increased 8% to $735.6 million from $700 million in the prior-year period.

L Brands reported comps growth of 5% at Victoria's Secret stores and 5% at Bath & Body Works, while direct sales at Victoria's Secret increased 7%.

For the 39-week period ended Oct 31, 2015, net sales grew 5% to $7,759 million from $7,385 million in the prior-year comparable period, while comps rose 5% for the same time frame.

For the third quarter, comps at Victoria's Secret jumped 7% and 6% at Bath & Body.

Following, robust performance in October, the company has raised its earnings outlook for third-quarter 2015. The company now expects third-quarter earnings per share in the range of 51 cents and 53 cents, up from 40 cents to 45 cents as well as from the prior-year figure of 44 cents. The company is expected to release its third-quarter numbers on Nov 19.

The Zacks Rank #2 (Buy) company operates about 3,003 stores worldwide. It commands a market-leading position in the lingerie, personal care and beauty segments. We believe that L Brands' innovative merchandise and exclusive assortments make it popular among consumers and sets it apart from peers. The company, with its operational efficiencies as well as new and wide selection of merchandise, remains well positioned to capitalize on the same.

Apart from L Brands, retailers such as The Buckle, Inc. BKE , Zumiez, Inc. ZUMZ and Stein Mart Inc. SMRT have also reported the comps for October. All the three companies missed comps expectations and declined 5.8%, 8.1% and 2.5% year over year at Buckle, Zumiez and Stein Mart, respectively.

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 >>

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

BUCKLE INC (BKE): Free Stock Analysis Report

STEIN MART INC (SMRT): 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 Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

ZUMZ BKE SMRT

Other Topics

Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More