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L Brands Rallies on Impressive June Outlook; May Comps Flat
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L Brands, Inc.’s comparable store sales (comps) for the four weeks ended May 28, 2016 remained flat year over year but handily beat analysts' expectations. Moreover, net sales for May inched up 2% to $816.6 million.
L Brands’ comps dipped 1% at Victoria’s Secret stores but increased 3% at Bath & Body Works. On the other hand, for the 17-week period ended May 28, 2016, net sales grew 4% to $3,430 million from $3,311 million in the prior-year period. Comps rose 2% over the same period.
Also, the company expects comps to increase by low-single digits in June due to higher sales related to Memorial Day. Following the news the company’s shares jumped 4.3% on Jun 2.
The company operates about 3,038 stores worldwide. It is a market leader in the lingerie, personal care and beauty segments. L Brands’ innovative merchandise and exclusive assortments make it popular among consumers and makes the brand unique. We believe that the company, with its operational efficiencies as well as new and diverse selection of merchandise, is well positioned for growth.
On the flip side, this Zacks Rank #4 (Sell) company had earlier provided a subdued outlook for the second quarter and fiscal 2016. Management now estimates earnings in the band of $3.60–$3.80 per share for fiscal 2016, down sharply from the previous guidance of $3.90–$4.10. On the other hand, the company expects the fiscal second-quarter earnings in the range of 50–60 cents a share. L Brands now expects comparable sales to be flat to down in low-single digits in the fiscal second quarter.
Consequently, the Zacks Consensus Estimate has been witnessing a downtrend. Over the past 30 days, the Zacks Consensus Estimate of $3.70 and $3.98 for fiscal 2016 and fiscal 2017 has decreased 39 cents and 51 cents, respectively. Moreover, the Zacks Consensus Estimate for the second quarter has dropped 14 cents to 56 cents over the same time frame
Other retailers that recently reported comps for May include Zumiez, Inc. (ZUMZ - Free Report) and The Buckle, Inc. (BKE - Free Report) . Shares of the companies fell 7.6% and 11%, respectively. On the other hand, Costco Wholesale Corporation (COST - Free Report) registered flat comps.
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L Brands Rallies on Impressive June Outlook; May Comps Flat
L Brands, Inc.’s comparable store sales (comps) for the four weeks ended May 28, 2016 remained flat year over year but handily beat analysts' expectations. Moreover, net sales for May inched up 2% to $816.6 million.
L Brands’ comps dipped 1% at Victoria’s Secret stores but increased 3% at Bath & Body Works. On the other hand, for the 17-week period ended May 28, 2016, net sales grew 4% to $3,430 million from $3,311 million in the prior-year period. Comps rose 2% over the same period.
Also, the company expects comps to increase by low-single digits in June due to higher sales related to Memorial Day. Following the news the company’s shares jumped 4.3% on Jun 2.
The company operates about 3,038 stores worldwide. It is a market leader in the lingerie, personal care and beauty segments. L Brands’ innovative merchandise and exclusive assortments make it popular among consumers and makes the brand unique. We believe that the company, with its operational efficiencies as well as new and diverse selection of merchandise, is well positioned for growth.
On the flip side, this Zacks Rank #4 (Sell) company had earlier provided a subdued outlook for the second quarter and fiscal 2016. Management now estimates earnings in the band of $3.60–$3.80 per share for fiscal 2016, down sharply from the previous guidance of $3.90–$4.10. On the other hand, the company expects the fiscal second-quarter earnings in the range of 50–60 cents a share. L Brands now expects comparable sales to be flat to down in low-single digits in the fiscal second quarter.
Consequently, the Zacks Consensus Estimate has been witnessing a downtrend. Over the past 30 days, the Zacks Consensus Estimate of $3.70 and $3.98 for fiscal 2016 and fiscal 2017 has decreased 39 cents and 51 cents, respectively. Moreover, the Zacks Consensus Estimate for the second quarter has dropped 14 cents to 56 cents over the same time frame
Other retailers that recently reported comps for May include Zumiez, Inc. (ZUMZ - Free Report) and The Buckle, Inc. (BKE - Free Report) . Shares of the companies fell 7.6% and 11%, respectively. On the other hand, Costco Wholesale Corporation (COST - Free Report) registered flat comps.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>