Victoria's Secret parent L Brands tumbles on lowered guidance
- L Brands is falling more than 6% in post-market trading Wednesday after releasing first-quarter results.
- The owner of Victoria's Secret, PINK, and Bath & Body Works beat on both the top and bottom lines.
- However, it lowered its full-year 2018 earnings guidance.
- Watch L Brands trade in real-time here.
L Brands, owner of Victoria's Secret, PINK, and Bath & Body Works, is falling more than 6% in post-market trading Wednesday after lowering its full-year guidance.
L Brands reported earnings of $0.17 per share, beating the $0.15 per share estimate from analysts surveyed by Bloomberg. Earnings-per-share decreased significantly, down 48% from a year ago. Meanwhile, revenue came in at $2.63 billion compared to the $2.6 billion analysts expected.
The company lowered its guidance for full-year 2018 EPS to $2.70-$3.00 a share from $2.95-$3.25. It forecasted second quarter earnings of $0.30-$0.35 a share.
Victoria's Secret and PINK have long been heralded as stores being resistant to the rise of e-commerce and therefore continued to grow even as other retailers like Sears and Toys 'R' Us struggled. However, April marked a second straight month of negative comp sales at PINK. The brand turned to promotions and discounts to try and boost same-store sales without too much success, and the popularity of the cheaper bralette cut into margins.
L Brands is down more than 46% this year.
