We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why L Brands (LB) Shares Jumped Post July Sales Results
Read MoreHide Full Article
Shares of L Brands, Inc. rose nearly 2.5% following better-than-expected comparable store sales (comps) for the four weeks ended Jul 30, 2016. Comps increased 2% year over year and also beat analysts’ expectations. Net sales for July improved 2% on a year-over-year basis to $777 million.
Moreover, sales for the 13 week-period ended Jul 30, 2016 jumped 5% to $2,890 billion from the year-ago period. Further, comps for the said period rose 3% year over year.
On the other hand, this specialty retailer recorded net sales of $5,504 billion for the period of 26 weeks ended Jul 30, 2016. The figure increased 4% from the year-ago period. Additionally, comps for the said period were up 3% on a year-over-year basis.
L Brands’ comps remained flat at Victoria’s Secret but increased 6% at Bath & Body Works in the month of July. For the 13 week-period, comps improved 2% and 5% at Victoria’s Secret and Bath & Body Works, respectively. Management now envisions August comps to be approximately flat.
Additionally, the company updated its guidance and expects second-quarter fiscal 2016 adjusted earnings at the high end of its previously issued guidance range of 50−60 cents a share. Earlier, management had pointed out that quarterly earnings might be impacted by foreign currency headwinds, incremental interest expense and pre-opening costs for the flagship Victoria’s secret store. The Zacks Consensus Estimate for the second quarter and fiscal 2016 is currently pegged at 60 cents and $3.71, respectively.
L Brands’ sustained focus on cost containment, inventory management, merchandise, and speed-to-market initiatives has kept it afloat in a soft consumer environment. Despite these positives, the competitive retail landscape and short-term challenges cannot be ignored.
Zacks Rank
Currently, L Brands carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same industry include Christopher & Banks Corporation , sporting a Zacks Rank #1 (Strong Buy), The Children's Place, Inc. (PLCE - Free Report) and American Eagle Outfitters, Inc. (AEO - Free Report) , both carrying a Zacks Rank #2 (Buy).
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 >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why L Brands (LB) Shares Jumped Post July Sales Results
Shares of L Brands, Inc. rose nearly 2.5% following better-than-expected comparable store sales (comps) for the four weeks ended Jul 30, 2016. Comps increased 2% year over year and also beat analysts’ expectations. Net sales for July improved 2% on a year-over-year basis to $777 million.
Moreover, sales for the 13 week-period ended Jul 30, 2016 jumped 5% to $2,890 billion from the year-ago period. Further, comps for the said period rose 3% year over year.
On the other hand, this specialty retailer recorded net sales of $5,504 billion for the period of 26 weeks ended Jul 30, 2016. The figure increased 4% from the year-ago period. Additionally, comps for the said period were up 3% on a year-over-year basis.
L Brands’ comps remained flat at Victoria’s Secret but increased 6% at Bath & Body Works in the month of July. For the 13 week-period, comps improved 2% and 5% at Victoria’s Secret and Bath & Body Works, respectively. Management now envisions August comps to be approximately flat.
L BRANDS INC Price
L BRANDS INC Price | L BRANDS INC Quote
Additionally, the company updated its guidance and expects second-quarter fiscal 2016 adjusted earnings at the high end of its previously issued guidance range of 50−60 cents a share. Earlier, management had pointed out that quarterly earnings might be impacted by foreign currency headwinds, incremental interest expense and pre-opening costs for the flagship Victoria’s secret store. The Zacks Consensus Estimate for the second quarter and fiscal 2016 is currently pegged at 60 cents and $3.71, respectively.
L Brands’ sustained focus on cost containment, inventory management, merchandise, and speed-to-market initiatives has kept it afloat in a soft consumer environment. Despite these positives, the competitive retail landscape and short-term challenges cannot be ignored.
Zacks Rank
Currently, L Brands carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same industry include Christopher & Banks Corporation , sporting a Zacks Rank #1 (Strong Buy), The Children's Place, Inc. (PLCE - Free Report) and American Eagle Outfitters, Inc. (AEO - Free Report) , both carrying a Zacks Rank #2 (Buy).
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 >>