L Brands Q4 sales better than expected; increases dividend

Columbus, Ohio -- L Brands shareholders will receive a post-holiday gift in the way of a $2 a share special dividend. The news comes as the retailer, which also increased its ordinary annual dividend by 47% to $2 a share from $1.36 a share, reported significantly better than expected profits for its fourth quarter.



L Brands, whose brands include Victoria’s Secret, Bath & Body Works and La Senza, said same-store sales increased 7% and total sales for the four-week period ended Jan. 31 increased 7% to $783.1 million.



Sales for the full fourth quarter period also increased 7% to slightly more than $4 billion while same-store sales grew 6%.



On the heels of its strong quarterly performance, L Brands increased its full-year profit forecast. Fourth quarter earnings are expected to range from $1.78 and $1.80, well above a prior forecast range of $1.61 to $1.71, when the company reports results on Feb. 26.



“I am very proud and appreciative of the team's focus and the disciplined execution in our business, which drove record performance in 2014. The dividend and share repurchase actions announced today reflect confidence in our growth opportunities and commitment to delivering shareholder value,” said L Brands chairman and CEO Leslie Wexner.