Shares of L Brands, Inc. declined roughly 8% on Jan 5, 2016. The move came after this specialty retailer of women’s intimate and other apparel, beauty and personal care products reported soft comparable-store sales (comps) for Dec 2016 and trimmed its fourth-quarter fiscal 2016 earnings projection.
Coming to numbers, L Brands comps for the five-week period ended Dec 31, 2016, edged down 1% after increasing 4%, 1%, 3% and 2% in November, October, September and August, respectively. However, net sales for December rose 1% to $2.438 billion.
L Brands’ comps declined 4% at Victoria’s Secret, however increased 3% at Bath & Body Works. On the other hand, for the 48-week period ended Dec 31, 2016, net sales grew 4% to $11.769 from $11.343 billion in the prior-year period. Comps rose 2% over the same period.
The company stated that merchandise margin rate fell considerably in December, in comparison to 2015, primarily due to flaring promotional expenses as well as a decline in the beauty category. As a result, the company is repositioning its beauty category.
This Columbus, OH-based company now expects Jan 2017 comps to be flat. The company has also lowered its profit outlook for fourth-quarter 2016. The company projects earnings per share to be at the lower end of its guidance range of $1.85–$2.00. The competitive retail landscape and short-term challenges, such as foreign currency headwinds, are likely to weigh upon the company’s performance.
The company’s shares have declined more than 35.7% in the past one year, underperforming the Zacks categorized Retail-Apparel/Shoe industry, which has decreased 11.1%.
Apart from L Brands, Costco Wholesale Corporation (COST - Free Report) , Zumiez Inc. (ZUMZ - Free Report) and Macy's, Inc. (M - Free Report) came out with their comps results. Comps of both Costco and Zumiez increased 3% and 3.4% for December, respectively. However, Macy’s comps, on an owned plus licensed basis, decreased 2.1% during the combined period of November and December; while on an owned basis, comparable sales fell 2.7%.
L Brands currently has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
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Shares of L Brands, Inc. declined roughly 8% on Jan 5, 2016. The move came after this specialty retailer of women’s intimate and other apparel, beauty and personal care products reported soft comparable-store sales (comps) for Dec 2016 and trimmed its fourth-quarter fiscal 2016 earnings projection.
Coming to numbers, L Brands comps for the five-week period ended Dec 31, 2016, edged down 1% after increasing 4%, 1%, 3% and 2% in November, October, September and August, respectively. However, net sales for December rose 1% to $2.438 billion.
L Brands’ comps declined 4% at Victoria’s Secret, however increased 3% at Bath & Body Works. On the other hand, for the 48-week period ended Dec 31, 2016, net sales grew 4% to $11.769 from $11.343 billion in the prior-year period. Comps rose 2% over the same period.
The company stated that merchandise margin rate fell considerably in December, in comparison to 2015, primarily due to flaring promotional expenses as well as a decline in the beauty category. As a result, the company is repositioning its beauty category.
This Columbus, OH-based company now expects Jan 2017 comps to be flat. The company has also lowered its profit outlook for fourth-quarter 2016. The company projects earnings per share to be at the lower end of its guidance range of $1.85–$2.00. The competitive retail landscape and short-term challenges, such as foreign currency headwinds, are likely to weigh upon the company’s performance.
The company’s shares have declined more than 35.7% in the past one year, underperforming the Zacks categorized Retail-Apparel/Shoe industry, which has decreased 11.1%.
Apart from L Brands, Costco Wholesale Corporation (COST - Free Report) , Zumiez Inc. (ZUMZ - Free Report) and Macy's, Inc. (M - Free Report) came out with their comps results. Comps of both Costco and Zumiez increased 3% and 3.4% for December, respectively. However, Macy’s comps, on an owned plus licensed basis, decreased 2.1% during the combined period of November and December; while on an owned basis, comparable sales fell 2.7%.
L Brands currently has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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