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L Brands, Inc.

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L Brands’ operational efficiencies and innovative collections are favoring its performance. This finds reflection in fourth-quarter fiscal 2015 results, when the company posted second straight quarter of positive earnings surprise. Results were backed by higher sales and improved margins. Moreover, top line also came ahead of the Zacks Consensus Estimate after three successive quarters of revenue miss. However, management provided its first quarter and fiscal 2016 earnings per share guidance below the Zacks consensus estimate. This could trigger a downward revision in the coming days. Nevertheless, the company’s market leading position in the lingerie, personal care and beauty segments, remains popular among consumers, and sets it apart from its peers. However, foreign currency headwinds and a competitive retail landscape still remain lingering issues, and may impact the results.

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