|L Brands Reports Fourth Quarter And Full-Year 2016 Earnings|
Fourth Quarter Results
Reported results above include a favorable tax settlement of
Net sales for the fourth quarter ended
The reported results above include certain significant items as detailed below:
Excluding the significant items above, adjusted full-year earnings per share decreased 6 percent to
Net sales for the year ended
At the conclusion of this press release is a reconciliation of reported to adjusted results, including a description of the significant items.
The company expects to report a mid-to-high-teens decrease in February comparable sales, below expectations for a mid-single digit decrease, reflecting a decline of about 20 percent at Victoria’s Secret and a mid-single digit decline at Bath & Body Works. The exit of swim and apparel at Victoria’s Secret is negatively impacting total company comparable sales by about 6 percentage points.
Earnings Call and Additional Information
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
We are not under any obligation and do not intend to make publicly available any update or other revisions to any of the forward-looking statements contained in this press release or the fourth quarter earnings call to reflect circumstances existing after the date of this press release or to reflect the occurrence of future events even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized. Additional information regarding these and other factors can be found in Item 1A. Risk Factors in our 2015 Annual Report on Form 10-K.
The “Adjusted Financial Information” provided in the attached reflects the following non-GAAP financial measures:
In the fourth quarter of 2016, adjusted results exclude the following:
In the third quarter of 2016, there were no adjustments to results.
In the second quarter of 2016, adjusted results exclude the following:
In the first quarter of 2016, adjusted results exclude the following:
In the second, third and fourth quarters of 2015, there were no adjustments to results.
In the first quarter of 2015, adjusted results exclude the following:
The Adjusted Financial Information should not be construed as an alternative to the reported results determined in accordance with generally accepted accounting principles. Further, the Company’s definition of adjusted income information may differ from similarly titled measures used by other companies. Management believes that the presentation of adjusted financial information provides additional information to investors to facilitate the comparison of past and present operations. While it is not possible to predict future results, management believes the adjusted information is useful for the assessment of the ongoing operations of the Company because the adjusted items are not indicative of our ongoing operations due to their size and nature. Additionally, management uses adjusted financial information as key performance measures of results of operations for the purpose of evaluating performance internally. The Adjusted Financial Information should be read in conjunction with the Company’s historical financial statements and notes thereto contained in the Company’s quarterly reports on Form 10-Q and annual report on Form 10-K.
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