Specialty retailer shines with record sales and earnings

A specialty retailer that is defined by consistent same-store increases for the past three quarters, an over-the-top televised fashion show and loyal customers who still love its in-store experience has chalked up another record quarter.



L Brands, the parent company of Victoria's Secret and Bath and Body Works, kept its winning streak going in the third quarter ended Oct. 31. Same-store sales increased 7%. Net sales rose 7% to $2.48 billion.



Net income rose 24.4% to a better-than-expected $164 million, compared to $131.8 million last year.



“We delivered record results in the third quarter,” said Leslie H. Wexner, chairman and CEO. “Our brands are differentiated and have high emotional content and we continue to deliver new, compelling merchandise in an exciting in-store experience. 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, Wexner said he thinks the success of his company depends on brick-and-mortar, not e-commerce. He noted that L Brands customers depend on a rich and rewarding store experience, which, in turn, drives sales.



L brands has been topping analyst expectations for several quarters and its stock price has been steadily growing while most of its peers have lost value. To date, 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. It 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 3,000 Victoria's Secret, PINK, Bath & Body Works, La Senza and Henri Bendel stores worldwide.