L Brands June Sales Increase Less Than Expected

By Neil Haggerty 

L Brands Inc. said Thursday that its June sales rose from the previous year, but the increase was less than Wall Street had expected.

The same-store-sales increase for the company's Victoria's Secret brand was well below analysts' expectations. Its Bath & Body Works brand's increase exceeded Wall Street projections.

For the five weeks ended July 4, sales rose to $1.21 billion from $1.18 billion the previous year. Same-store sales grew 3% overall.

Victoria's Secret same-store sales grew 1%, down from a 3% increase the previous year. Bath & Body Works sales grew 6%, up from a 1% increase the previous year.

Analysts polled by Thomson Reuters expected same-store sales to climb 3.4% overall, including 3.6% at Victoria's Secret and 4.2% at Bath & Body Works.

For the 22 weeks ended July 4, sales increased 4.3% to $4.52 billion.

The Columbus, Ohio-based retailer has been a relative bright spot in an industry that has faced issues such as markdowns and an explosion of online shopping in recent years. Since the beginning of this year, L Brands repurchased $250 million of stock from shareholders and authorized another $250 million buyback last month. In February, the company raised its annual quarterly dividend 47% to $2 a share and announced a special dividend of another $2.

The company's shares were inactive premarket.

Write to Neil Haggerty at [e-mail]

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