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L Brands Reports July 2017 Sales and Updates Second Quarter Earnings Guidance

COLUMBUS, Ohio, Aug. 03, 2017 (GLOBE NEWSWIRE) -- L Brands, Inc. (NYSE:LB) reported net sales of $767.7 million for the four weeks ended July 29, 2017, compared to net sales of $777.0 million for the four weeks ended July 30, 2016.  Comparable sales decreased 7 percent for the four weeks ended July 29, 2017.  For July, the exit of the swim and apparel categories had a negative impact of about 4 percentage points and 5 percentage points to total company and Victoria’s Secret comparable sales, respectively.

The company reported net sales of $2.755 billion for the 13 weeks ended July 29, 2017, compared to sales of $2.890 billion for the 13 weeks ended July 30, 2016.  The company reported a comparable sales decrease of 8 percent for the 13 weeks ended July 29, 2017.  For the 13 weeks ended July 29, 2017, the exit of the swim and apparel categories had a negative impact of about 6 percentage points and 9 percentage points to total company and Victoria’s Secret comparable sales, respectively.

The company reported net sales of $5.192 billion for the 26 weeks ended July 29, 2017, compared to sales of $5.504 billion for the 26 weeks ended July 30, 2016.  Comparable sales decreased 9 percent for the 26 weeks ended July 29, 2017.  For the 26 weeks ended July 29, 2017, the exit of the swim and apparel categories had a negative impact of about 6 percentage points and 9 percentage points to total company and Victoria’s Secret comparable sales, respectively.

The company stated that it expects to report second quarter earnings per share at the high end of its previous guidance range of $0.40 to $0.45 per share. 

To hear further commentary provided on L Brands’ prerecorded July sales message, call 1-866-639-7583, or log onto www.LB.com for an audio replay.  The company will release its second quarter earnings after the close of the market on Aug. 16 and hold its conference call at 9 a.m. Eastern on Aug. 17.

ABOUT L BRANDS:
L Brands, through Victoria’s Secret, PINK, Bath & Body Works, La Senza and Henri Bendel, is an international company.  The company operates 3,077 company-owned specialty stores in the United States, Canada, the United Kingdom and Greater China, and its brands are sold in more than 750 additional franchised locations worldwide.  The company’s products are also available online at www.VictoriasSecret.com, www.BathandBodyWorks.com, www.HenriBendel.com and www.LaSenza.com.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

We caution that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this press release or the July sales call or made by our company or our management involve risks and uncertainties and are subject to change based on various factors, many of which are beyond our control. Accordingly, our future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Words such as “estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “planned,” “potential” and any similar expressions may identify forward-looking statements. Risks associated with the following factors, among others, in some cases have affected and in the future could affect our financial performance and actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements included in this press release or the July sales call or otherwise made by our company or our management:

• general economic conditions, consumer confidence, consumer spending patterns and market disruptions including severe weather conditions, natural disasters, health hazards, terrorist activities, financial crises, political crises or other major events, or the prospect of these events;
• the seasonality of our business;
• the dependence on mall traffic and the availability of suitable store locations on appropriate terms;
• our ability to grow through new store openings and existing store remodels and expansions;
• our ability to successfully expand internationally and related risks;
• our independent franchise, license and wholesale partners;
• our direct channel businesses;
• our ability to protect our reputation and our brand images;
• our ability to attract customers with marketing, advertising and promotional programs;
• our ability to protect our trade names, trademarks and patents;
• the highly competitive nature of the retail industry and the segments in which we operate;
• consumer acceptance of our products and our ability to manage the life cycle of our brands, keep up with fashion trends, develop new merchandise and launch new product lines successfully;
• our ability to source, distribute and sell goods and materials on a global basis, including risks related to:

  • political instability, significant health hazards, environmental hazards or natural disasters;
  • duties, taxes and other charges;
  • legal and regulatory matters;
  • volatility in currency exchange rates;
  • local business practices and political issues;
  • potential delays or disruptions in shipping and transportation and related pricing impacts;
  • disruption due to labor disputes; and
  • changing expectations regarding product safety due to new legislation;

• our geographic concentration of supplier and distribution facilities in central Ohio;
• fluctuations in foreign currency exchange rates;
• stock price volatility;
• our ability to pay dividends and related effects;
• our ability to maintain our credit rating;
• our ability to service or refinance our debt;
• our ability to retain key personnel;
• our ability to attract, develop and retain qualified associates and manage labor-related costs;
• the ability of our manufacturers to deliver products in a timely manner, meet quality standards and comply with applicable laws and regulations;
• fluctuations in product input costs;
• our ability to adequately protect our assets from loss and theft;
• fluctuations in energy costs;
• increases in the costs of mailing, paper and printing;
• claims arising from our self-insurance;
• our ability to implement and maintain information technology systems and to protect associated data;
• our ability to maintain the security of customer, associate, supplier or company information;
• our ability to comply with regulatory requirements;
• legal and compliance matters; and
• tax, trade and other regulatory matters.

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 July sales 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 2016 Annual Report on Form 10-K.

L BRANDS
JULY 2017

Comparable Sales Increase (Decrease) (Stores and Direct):

   

 

July
2017
   

 

July
2016
  Second
Quarter
2017
   

Second
Quarter
2016
  Year-to-
Date
2017
  Year-to-
Date
2016
 
                         
Victoria’s Secret1 (10 %)   0 %   (14 %)   2 %   (14 %)   2 %  
Bath & Body Works1 1 %   6 %   6 %   5 %   4 %   6 %  
L Brands2 (7 %)    2 %    (8 %)    3 %    (9 %)    3 %  

1 – Results include company-owned stores in the U.S. and Canada and direct sales.
2 – Results include company-owned stores in the U.S., Canada, the U.K. and Greater China and direct sales.

Comparable Sales Increase (Decrease) (Stores Only):

   

 

July
2017
   

 

July
2016
   

Second
Quarter
2017
   

Second
Quarter
2016
  Year-to-
Date
2017
  Year-to-
Date
2016
 
                         
Victoria’s Secret1 (9 %)   (1 %)   (11 %)   1 %   (11 %)   1 %  
Bath & Body Works1 (1 %)   4 %   4 %   3 %   2 %   4 %  
L Brands2 (7 %)   0 %    (6 %)    1 %   (7 %)    2 %  

1 – Results include company-owned stores in the U.S. and Canada.
2 – Results include company-owned stores in the U.S., Canada, the U.K. and Greater China.

Total Sales (Millions):

   

Second
Quarter
 2017
   

Second
Quarter
 2016
  Year-
to-
Date
 2017
  Year-
to-
Date
 2016
               
Victoria’s Secret1 $ 1,351.0   $ 1,469.1   $ 2,597.5   $ 2,850.3
Victoria’s Secret Direct   295.3     398.3     581.8     757.9
  Total Victoria’s Secret $ 1,646.3   $ 1,867.4   $ 3,179.3   $ 3,608.2
Bath & Body Works1 $ 753.0   $ 709.1   $ 1,341.5   $ 1,295.7
Bath & Body Works Direct   107.3      92.3      196.9      165.9
  Total Bath & Body Works $ 860.3   $ 801.4   $ 1,538.4   $ 1,461.6
VS & BBW International2 $   113.9   $   99.7   $   217.2   $   195.0
Other $ 134.5   $ 121.2   $ 256.6   $ 238.8
L Brands $ 2,755.0   $ 2,889.7   $ 5,191.5   $ 5,503.6

1 – Results include company-owned stores in the U.S. and Canada.
2 – Results include retail sales from company-owned stores outside of the U.S. and Canada, royalties associated with franchised stores and wholesale sales.

Total Company-Owned Stores:

    Stores  

 
  Stores
    Operating   Operating
    at 1/28/17 Opened   Closed at 7/29/17
           
Victoria's Secret U.S.   998 2 (6 ) 994
PINK U.S.   133 2 (1 ) 134
Victoria's Secret Canada   37 2 -   39
PINK Canada   9 - (2 ) 7
  Total Victoria’s Secret   1,177 6 (9 ) 1,174
           
Bath & Body Works U.S.   1,591 17 (12 ) 1,596
Bath & Body Works Canada    102 - -   102
  Total Bath & Body Works   1,693 17 (12 ) 1,698
           
Victoria’s Secret U.K.   15 1 -   16
PINK U.K.   3 - -   3
Victoria’s Secret Beauty and Accessories   31 - (1 ) 30
Victoria’s Secret China   - 2 -   2
  Total VS & BBW International   49 3 (1 ) 51
           
Henri Bendel   29 - -   29
La Senza U.S.   4 - -   4
La Senza Canada   122 1 (2 ) 121
Total L Brands Stores   3,074 27 (24 ) 3,077

Total Noncompany-Owned Stores:

    Stores  

 
  Stores
    Operating Operating
    at 1/28/17 Opened   Closed At 7/29/17
           
Victoria’s Secret Beauty & Accessories – Travel Retail   152 11 (8 ) 155
Bath & Body Works – Travel Retail   8 2 -   10
Victoria’s Secret Beauty & Accessories   239 7 (10 ) 236
Victoria’s Secret   23 4 -   27
PINK   5 - -   5
Bath & Body Works   151 13 (1 ) 163
La Senza   203 4 (9 ) 198
Total    781 41 (28 ) 794


For further information, please contact:

L Brands:
Investor Relations
Amie Preston
(614) 415-6704
apreston@lb.com

Media Relations
Tammy Roberts Myers
(614) 415-7072
communications@lb.com

Primary Logo

L Brands Inc