News Column

Victoria's Secret owner L Brands' profit grows

May 21, 2014

COLUMBUS, Ohio (AP) L Brands Inc., the owner of Victoria's Secret and Bath & Body Works, said profit in its latest quarter increased 10 percent on stronger sales.

The Columbus, Ohio-based retailer earned $156.9 million, or 53 cents per share, in the three months through May 3. That's up from $142.5 million, or 48 cents per share, in the fiscal first quarter last year. Revenue increased 5 percent, to $2.39 billion from $2.27 billion.

Analysts polled by FactSet were anticipating earnings of 52 cents per share on revenue of $2.39 billion.

L Brands' revenue from stores open at least a year increased 2 percent. This is considered a key indicator of financial performance as it strips away sales from recently opened or closed sites.

The company expects to earn between 57 and 62 cents per share for its second quarter; analysts had forecast 61 cents per share.

For the full year, L Brands forecast earnings between $3 and $3.15 per share, down from its prior forecast of $3 to $3.20 per share. This reflects a hit of 10 to 12 cents per share as the company stops selling some Victoria's Secret products.

Shares added 14 cents to $56 in after-hours trading.

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Source: Associated Press