Back to top

Analyst Blog

L Brands, Inc. (LB - Analyst Report) formerly known as Limited Brands, posted fourth-quarter fiscal 2013 earnings of $1.65 per share that came ahead of the Zacks Consensus Estimate of $1.61 but fell 6% from the prior-year quarter earnings of $1.76.

This specialty retailer of women’s intimate and other apparel, beauty and personal care products posted net sales of $3,818.2 million, down 1% from $3,855.6 million reported in the prior-year quarter, and also fell short of the Zacks Consensus Estimate of $3,855 million.

L Brands, which operated 2,923 stores as of Feb 1, 2014, posted comparable-store sales growth of 1% during the quarter compared with 5% in the prior-year quarter.

Sales at Victoria’s Secret Stores & Victoria’s Secret Beauty increased 1% to $1,724.2 million, whereas comps were up 3%. Victoria's Secret Direct sales fell 6% to $504.5 million. Total Victoria’s Secret sales edged down 1% to $2,228.7 million. Bath & Body Works & The White Barn Candle Co.’s total sales decreased 4% to $1,205.4 million, with a 1% decline in comps. Comps at La Senza fell 3%, while sales plummeted 9% to $92.8 million.

Gross profit for the quarter tumbled 6% to $1,642.3 million, whereas gross margin contracted 220 basis points to 43%. Operating income fell 5% to $863.5 million, whereas operating margin shriveled 90 basis points to 22.6%.

Management now forecasts earnings in the range of 44 cents to 49 cents a share for the first quarter and between $3.00 and $3.20 per share for fiscal 2014.

The current Zacks Consensus Estimate for the first quarter and fiscal 2014 are 51 cents and $3.33 per share, respectively, and could witness a downward revision in the coming days.

L Brands projects total comparable-store sales ranging from flat to the low-single-digits for February.

Currently, L Brands holds a Zacks Rank #4 (Sell). Some better ranked stocks in the retail sector are Hanesbrands Inc. (HBI - Analyst Report) and Michael Kors Holdings Limited (KORS - Analyst Report) both carrying a Zacks Rank #1 (Strong Buy), and Columbia Sportswear Company (COLM - Snapshot Report) sporting a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
FELCOR LODG… FCH 10.49 +3.66%
COVENANT TR… CVTI 12.50 +3.22%
OLD DOMINIO… ODFL 63.56 +1.31%
VASCO DATA… VDSI 13.63 +1.11%
FIRSTSERVIC… FSRV 56.19 +0.83%