L Brands reports soft January sales and positive Q4 and full year results

By

Obi Anyanwu

Published
Feb 5, 2016

L Brands, Inc. on Thursday announced the sales results for its fourth quarter and full year ended January 30, 2016. The company reported positive numbers for all brands in both periods.

 
Net sales for the fourth quarter increased 8% to $4.395 billion from $4.069 billion in the previous year’s fourth quarter, and comparable store sales increased 6%. Net sales for the year were $12.154 billion, an increase of 6% from $11.454 billion in the previous year, and comparable store sales for the year increased 5%.
 
The company also reported a 4% increase in sales for the four-week period ended January 30, 2016. Net sales were $811.3 million compared to $783.1 million in the previous year’s comparable period, but comparable sales decreased 2%. Sales were affected by a timing shift in the Victoria’s Secret semi-annual sale in December.

Leslie H. Wexner, chairman and CEO, commented, “We achieved our best year ever in 2015.  I am very appreciative of the focus on our customers, the excellent execution and teamwork across the enterprise that drove this result.  The dividend and share repurchase actions announced today reflect confidence in our growth opportunities and commitment to delivering shareholder value.”
 
The company expects to report fourth quarter earnings per share of about $2.05 compared to the previous guidance of $1.85 to $1.95. L Brands has also authorized a new $500 million share repurchase program, which includes $17 million outstanding under the previous program. The company repurchased $483 million of stock in 2015.