Victoria’s Secret owner slashes FY earnings guidance again

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Victoria’s Secret parent company L Brands saw shares fall 5 per cent in after-hours trading after it cut its full-year earnings guidance.

Despite achieving quarterly earnings and revenue that topped analysts’ expectations, the lingerie and homeware specialist said its full-year earnings guidance would come in lower than analyst forecasts.

Net sales rose 8.3 per cent from a year ago to $2.98 billion (£2.31 billion) in the three months to July 29.

These narrowly missed the original Thomson Reuters analyst forecasts of $2.93 billion (£2.28 billion).

Bath & Body Works reported comparable sales growth of 10 per cent, making up a third of total group sales and helping to combat a 1 per cent decline in sales at Victoria Secret.

The market was not kind on L Brand’s earnings cut, after the retailer revealed it expects earnings of $2.45 (£1.90) to $2.70 (£2.10) a share, down from the $2.70 (£2.10) to $3 (£2.33) range it already cut it to in May.

Analysts forecast earnings of $2.76 (£2.14) a share.

For the current third quarter, L Brands guided towards earnings of 0 to 5 cents (£0.03) a share, compared with market forecasts for 16 cents (£0.12).

Shares in L Brands fell 5 per cent on Wednesday after-hours trading after falling 46 per cent so far this year.

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