Shoppers can't get enough of lotion and lingerie
How many retailers have boasted of record sales and earnings in the third quarter? So far the answer is only one (hint: It hosts a bra and panty show on national television every fall).
The parent company of Victoria's Secret and Bath and Body Works kept its winning streak going in the third quarter ended Oct. 31. The company said earnings increased 25% to a record 55 cents, compared to 44 cents for the quarter ended Nov. 1, 2014.Same store sales increased 7%. Net sales were $2.482 billion, an increase of 7%. Net income was $164 million compared to $131.8 million last year.
“We delivered record results in the third quarter. Our brands are differentiated and have high emotional content and we continue to deliver new, compelling merchandise in an exciting in-store experience," saidLeslie H. Wexner, chairman and CEO. "We remain focused on executing fundamentals and staying close to our customers. We are pleased with our month-to-date performance and we are well-positioned for the most significant part of our year which is in front of us.”
In a conference call with investors on Tuesday, Wexner said he thinks the success of his company depends on brick-and-mortar, not e-commerce. He says L Brands customers depend on a rich and rewarding store experience, which in turn drives sales.
The company has been topping analyst expectations for several quarters and its stock price has been steadily growing while most of its peers have lost value. The retailer has even been able to avoid macroeconomic problems and weak currencies.
The company says it now expects 2015 fourth quarter earnings per share to be $1.85 to $1.95. The company raised its adjusted full-year earnings forecast to $3.69 to $3.79 per share from $3.58 to $3.73 previously, which incorporates the third quarter earnings beat to its previous forecast and increased fourth quarter interest expense of approximately $0.04 per share related to its recent $1 billion note issuance.
L Brands operates more than 3,000Victoria's Secret, PINK, Bath & Body Works, La Senza and Henri Bendel stores worldwide.