L Brands cuts profit outlook for the year, Victoria's Secret Pink CEO retires
Columbus, Ohio-based apparel group L Brands Inc. cut its profit outlook for the year on Wednesday, after announcing second-quarter earnings that beat expectations.
The company saw net sales rise to $2.984 billion for the quarter ended August 4, 2018, compared to sales of $2.755 billion for the same period last year.
Comparable sales for the 13 weeks increased 3 percent overall. Comparable sales fell at Victoria’s Secret by 1 percent, while they jumped 10 percent at Bath & Body Works and 3 percent at L Brands.
Victoria’s Secret sales have been falling at an alarming rate for the last couple of years, with Bath & Body Works expected to contribute more than half of the company's bottom line this year.
The company said it earned $0.36 a share compared to $0.48 for the quarter ended July 29, 2017. Net income was $99 million compared to $138.9 million last year.
Due to the fall, the company updated its guidance for 2018 full-year earnings per share to $2.45 to $2.70 from $2.70 to $3.00.
L brands also announced that Victoria’s Secret Pink CEO, Denise Landman, will retire at the end of this year and that Amy Hauk, current president for merchandising and product development of Bath & Body Works, will replace her.
“I feel incredibly fortunate to have been part of the Pink brand since its inception and L Brands for nearly 20 years. It’s been a privilege to lead and be surrounded by such incredible talent, thinking and creativity,” Landman said.
The company operates 3,076 company-owned specialty stores in the United States, Canada, the United Kingdom and Greater China, and its brands are sold in more than 800 additional franchised locations worldwide.
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