Press Release

L Brands Reports April 2018 Sales and Updates First Quarter Earnings Guidance

COLUMBUS, Ohio, May 10, 2018 (GLOBE NEWSWIRE) -- L Brands, Inc. (NYSE:LB) reported net sales increased 4 percent to  $751.6 million for the four weeks ended May 5, 2018, compared to net sales of $719.6 million for the four weeks ended April 29, 2017.  Comparable sales for the four weeks ended May 5, 2018, were flat compared to the four weeks ended May 6, 2017, and were negatively impacted by the earlier Easter holiday this year by about 3 percentage points. 

The company reported net sales of $2.626 billion for the first quarter ended May 5, 2018, an increase of 8 percent compared to sales of $2.437 billion for the quarter ended April 29, 2017.  Comparable sales for the first quarter ended May 5, 2018, increased 3 percent compared to the thirteen weeks ended May 6, 2017.

The company expects to report first quarter earnings per share at the lower end of its previous guidance of $0.15 to $0.20.

To hear further commentary provided on L Brands’ prerecorded April sales message, call 1-866-639-7583, or log onto www.LB.com for an audio replay.  The company will report first quarter earnings after the close of the market on May 23 and will hold its live earnings call at 9:00 a.m. Eastern on May 24.

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 3,069 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.  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 April 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 April 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 vendor 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 vendors 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, third-party 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 April 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 2017 Annual Report on Form 10-K.

For further information, please contact:        
                               
L Brands:
Investor Relations                                                                                                                               Media Relations
Amie Preston                                                                                                                                      Tammy Roberts Myers
(614) 415-6704                                                                                                                                   (614) 415-7072
apreston@lb.com                                                                                                                                communications@lb.com


L BRANDS

APRIL 2018

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

   

April
2018
   

April
2017
  First
Quarter
2018
  First
Quarter
2017
               
Victoria’s Secret1 (2 %)   (12 %)   1 %   (14 %)
Bath & Body Works1 6 %   10 %   8 %   2 %
L Brands2 0 %    (5 %)   3 %   (9 %)

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):

   

April
2018
   

April
2017
  First
Quarter
2018
  First
Quarter
2017
               
Victoria’s Secret1 (5 %)   (7 %)   (5 %)   (12 %)
Bath & Body Works1 2 %   6 %   5 %   (1 %)
L Brands2 (4 %)    (3 %)   (2 %)   (9 %)

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):

   

First
Quarter
 2018
   

First
Quarter
 2017
       
Victoria’s Secret1 $ 1,235.9   $ 1,246.5
Victoria’s Secret Direct   353.5     286.5
  Total Victoria’s Secret $ 1,589.4   $ 1,533.0
Bath & Body Works1 $ 648.6   $ 588.4
Bath & Body Works Direct   111.8     89.6
  Total Bath & Body Works $ 760.4   $ 678.0
VS & BBW International2 $   135.1   $   103.3
Other $ 140.9   $ 122.2
L Brands $ 2,625.8   $ 2,436.5

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 2/3/18 Opened   Closed at 5/5/18
           
Victoria's Secret U.S.   984 1 (5 ) 980
PINK U.S.   140 - -   140
Victoria's Secret Canada   39 - -   39
PINK Canada   7 - (1 ) 6
  Total Victoria’s Secret   1,170 1 (6 ) 1,165
           
Bath & Body Works U.S.   1,592 13 (11 ) 1,594
Bath & Body Works Canada    102 - -   102
  Total Bath & Body Works   1,694 13 (11 ) 1,696
           
Victoria’s Secret U.K./Ireland   19 - -   19
PINK U.K.   5 - -   5
Victoria’s Secret Beauty and Accessories   29 - -   29
Victoria’s Secret China   7 - -   7
  Total VS & BBW International   60 - -   60
           
Henri Bendel   27 - (3 ) 24
La Senza U.S.   5 - -   5
La Senza Canada   119 - -   119
Total L Brands Stores   3,075 14 (20 ) 3,069


Total Noncompany-Owned Stores:

    Stores  

 
    Stores
    Operating       Operating
    at 2/3/18 Opened   Closed At 5/5/18
           
Victoria’s Secret Beauty & Accessories – Travel Retail   156 11 (4 ) 163
Bath & Body Works – Travel Retail   9 - (2 ) 7
Victoria’s Secret Beauty & Accessories   241 2 (6 ) 237
Victoria’s Secret   32 5 -   37
PINK   5 1 -   6
Bath & Body Works   176 13 (1 ) 188
La Senza   194 - (2 ) 192
Total    813 32 (15 ) 830
           

Primary Logo

L Brands, Inc.