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L Brands (LB) to Report Q1 Earnings: What Awaits the Stock?
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L Brands, Inc. is likely to register an increase in the top line when it reports first-quarter fiscal 2021 results on May 19, 2021, after the closing bell. The Zacks Consensus Estimate for revenues is pegged at $3.02 billion, indicating growth of 82.8% from the prior-year reported figure.
The Zacks Consensus Estimate for first-quarter earnings has increased by 28.9% to $1.25 over the past seven days. The consensus estimate suggests a sharp improvement from a loss of 99 cents in the year-ago quarter.
Notably, this specialty retailer of women’s intimate and other apparel, beauty, and personal care products has a trailing four-quarter earnings surprise of 479.7%, on average. In the last reported quarter, the company’s bottom line outperformed the Zacks Consensus Estimate by 1.3%.
Key Factors to Note
L Brands’ first-quarter performance is likely to have benefited from sturdy performance at Bath & Body Works and a significant improvement at Victoria’s Secret segment. Certainly, the company remains committed toward improving performance by staying customer-focused, enriching assortments, and enhancing store and online experiences. The company has been managing inventory, optimizing capital expenditures and reducing overhead expenses.
On May 11, the company came out with its preliminary results for the first quarter. Management informed that the company generated net sales of $3,023.7 million for the first quarter ended May 1, 2021. Markedly, the metric surged 82.8% from net sales of $1,654.2 million for the first quarter ended May 2, 2020. For Bath & Body Works, net sales amounted to $1,469.5 million, up 93.2% year over year. At Victoria’s Secret, net sales were $1,554.2 million, reflecting an increase of 73.9% from the year-ago period.
L Brands’ comparable sales (stores and direct) were up 21% year on year. At Bath & Body Works and Victoria’s Secret comparable sales rose 16% and 25%, respectively.
Notably, L Brands raised its earnings view for the first quarter. The company guided first-quarter adjusted earnings per share to be $1.25. The company had earlier projected earnings between 85 cents and $1.00 per share. The bottom line is likely to reflect gains from strong sales and margin results at both Bath & Body Works and Victoria’s Secret. Business operations are likely to have gained from stimulus payments and relaxed COVID-19 restrictions.
Our proven model does not conclusively predict an earnings beat for L Brands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Although L Brands carries a Zacks Rank #2, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Here are companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Costco (COST - Free Report) has an Earnings ESP of +3.12% and a Zacks Rank #3.
Ross Stores (ROST - Free Report) has an Earnings ESP of +5.86% and a Zacks Rank #3.
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L Brands (LB) to Report Q1 Earnings: What Awaits the Stock?
L Brands, Inc. is likely to register an increase in the top line when it reports first-quarter fiscal 2021 results on May 19, 2021, after the closing bell. The Zacks Consensus Estimate for revenues is pegged at $3.02 billion, indicating growth of 82.8% from the prior-year reported figure.
The Zacks Consensus Estimate for first-quarter earnings has increased by 28.9% to $1.25 over the past seven days. The consensus estimate suggests a sharp improvement from a loss of 99 cents in the year-ago quarter.
Notably, this specialty retailer of women’s intimate and other apparel, beauty, and personal care products has a trailing four-quarter earnings surprise of 479.7%, on average. In the last reported quarter, the company’s bottom line outperformed the Zacks Consensus Estimate by 1.3%.
Key Factors to Note
L Brands’ first-quarter performance is likely to have benefited from sturdy performance at Bath & Body Works and a significant improvement at Victoria’s Secret segment. Certainly, the company remains committed toward improving performance by staying customer-focused, enriching assortments, and enhancing store and online experiences. The company has been managing inventory, optimizing capital expenditures and reducing overhead expenses.
On May 11, the company came out with its preliminary results for the first quarter. Management informed that the company generated net sales of $3,023.7 million for the first quarter ended May 1, 2021. Markedly, the metric surged 82.8% from net sales of $1,654.2 million for the first quarter ended May 2, 2020. For Bath & Body Works, net sales amounted to $1,469.5 million, up 93.2% year over year. At Victoria’s Secret, net sales were $1,554.2 million, reflecting an increase of 73.9% from the year-ago period.
L Brands’ comparable sales (stores and direct) were up 21% year on year. At Bath & Body Works and Victoria’s Secret comparable sales rose 16% and 25%, respectively.
Notably, L Brands raised its earnings view for the first quarter. The company guided first-quarter adjusted earnings per share to be $1.25. The company had earlier projected earnings between 85 cents and $1.00 per share. The bottom line is likely to reflect gains from strong sales and margin results at both Bath & Body Works and Victoria’s Secret. Business operations are likely to have gained from stimulus payments and relaxed COVID-19 restrictions.
L Brands, Inc. Price, Consensus and EPS Surprise
L Brands, Inc. price-consensus-eps-surprise-chart | L Brands, Inc. Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for L Brands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Although L Brands carries a Zacks Rank #2, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Here are companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Dollar Tree (DLTR - Free Report) has an Earnings ESP of +1.40% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Costco (COST - Free Report) has an Earnings ESP of +3.12% and a Zacks Rank #3.
Ross Stores (ROST - Free Report) has an Earnings ESP of +5.86% and a Zacks Rank #3.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>