L Brands 2nd-Quarter Net Up 25%; Full-Year View Raised

   By John Kell 
 

L Brands Inc.'s (LTD) fiscal second-quarter profit grew 25% as the retailer reported higher same-store sales at Victoria's Secret and Bath & Body Works.

Shares fell 1.4% to $59 in after-hours trading, as L Brands raised its full-year view but issued an outlook for the current quarter that missed Wall Street's expectations.

The company projected fiscal third-quarter earnings of 23 cents to 28 cents a share, below the 29-cent estimate from analysts surveyed by Thomson Reuters. L Brands now sees full-year profit between $3.06 and $3.21 a share, up from the May view of $2.95 to $3.15 a share.

The company, formerly called Limited Brands Inc., dominates the intimate-apparel and personal-care markets, though growth for the company's major store formats in the first half of the current fiscal year has slowed from year-ago levels.

Though retailers have broadly been stung by weak mall traffic and high promotions, some observers say L Brands has maintained growth by winning over customers with new products.

For the period ended Aug. 3, L Brands reported a profit of $178.9 million, or 61 cents a share, up from $143.6 million, or 49 cents a share, a year earlier. Prior-year results included a penny-a-share charge tied to La Senza store closures.

The company earlier this month estimated earnings of about 60 cents a share, a rosier view than what the retailer issued in May.

Gross margin was flat at 39.3%.

The company recently reported net sales jumped 5% to $2.52 billion and same-store sales rose 2%. Same-store sales grew 1% at Victoria's Secret and 3% at Bath & Body Works.

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