L Brands Comparable Sales in July Top Expectations

By Joshua Jamerson 

L Brands Inc.'s same-store sales climbed more than expected in July, and the Victoria's Secret operator said it expects earnings for the second quarter to come in at the high-end of its outlook range.

The retailer also expects August same-store sales to be about flat with a year ago.

L Brands said total same-store sales -- a metric that excludes locations that were opened or closed over the past year -- rose 2% in July. The company previously warned that July comparable sales could be flat to down low single digits.

For the month, same-store sales at Victoria's Secret were flat compared with last year, but rose 6% at Bath & Body Works. Strength in the Pink business and Victoria's Secret core-lingerie was offset by softness in noncore areas such as swimwear and apparel.

Total sales at the company increased 4.5% to $2.89 billion for the second quarter, the company said. Analysts, polled by Thomson Reuters, expected $2.85 billion. Same-store sales for the quarter rose 3%, and it expects adjusted per-share earnings for the period to come in at the high-end of its 50 cents to 60 cents range. The company is slated to report full results for the second quarter on Aug. 17.

Shares, down 13% in the past 12 months through Wednesday's close, were inactive in premarket trading.

Write to Joshua Jamerson at [e-mail]

(END) Dow Jones Newswires

August 04, 2016 09:03 ET (13:03 GMT)

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