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L Brands Showcases Stellar Comps Performance in January

L Brands, Inc.LB showcased a stellar comparable sales (comps) performance in the month of January, following a marginal increase witnessed in the month of December. Comps for the five-week period ended Feb 3, 2018 jumped 7%, after registering an increase of 1% in the preceding month. Moreover, net sales for the month under review surged 29.2% to $1,040 million.

Notably, L Brands' comps increased 4% at Victoria's Secret and 13% at Bath & Body Works. Management also highlighted that the fifth week in the month of January, represented roughly $150 million in sales and 7 cents in earnings per share.

The company recorded net sales of $4,823.1 million during the fourth quarter of fiscal 2017, reflecting an increase of 7.4% from $4,489.5 million sales generated in the year-ago period. Comparable sales rose 2% during the quarter. The quarterly sales also surpassed the Zacks Consensus Estimate of $4,795 million.

Since the announcement of sales results on Feb 8, shares of this specialty retailer of women's intimate and other apparel, beauty and personal care products have increased 1.8%. In the past six months, the stock has surged 19.9% compared with the industry 's growth of 18.9%.

For the 53-week period, the company's net sales inched up 0.5% to $12,632 million but comps declined 3%. The exit from the swim and apparel categories had 3 percentage points and 5 percentage points adverse impact on overall company and Victoria's Secret comparable sales, respectively.

L Brands, which shares space with Gap GPS , now envisions fourth-quarter earnings to be approximately $2.05 per share, up from the prior view of $2.00. The guidance includes the impact of tax reform legislation. The Zacks Consensus Estimate for the quarter is currently pegged at $2.02, which could witness an upward revision in the coming days.

Apart from L Brands, Costco COST and Zumiez ZUMZ came out with their comps results. Comps of Costco and Zumiez increased 6% and 6.3%, respectively, for the month of January.

L Brands, which operates 3,078 company-owned stores, currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

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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.

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