L Brands, Inc.’s (NYSE:LB) comparable store sales (comps) for the five weeks ended Jul 2, 2016 increased 6% year over year and also handily beat analysts' expectations. Moreover, net sales for June jumped 7% to $1.296 billion.
L Brands’ comps rose 6% at Victoria’s Secret and increased 7% at Bath & Body Works. On the other hand, for the 22-week period ended Jul 2, 2016, net sales grew 5% to $4.727 billion from $4.518 billion in the prior-year period. Comps rose 3% over the same period.
However, the company’s shares declined 1.5% on Jul 5 after it projected that comps for July could be in the range of flat to down by low-single digits.
This Zacks Rank #5 (Strong Sell) company had earlier provided a subdued outlook for the second quarter and fiscal 2016. Management estimates earnings in the band of $3.60–$3.80 per share for fiscal 2016, down sharply from the previous guidance of $3.90–$4.10. On the other hand, the company expects fiscal second-quarter earnings in the range of 50–60 cents per share. L Brands expects comparable sales to be in the range of flat to down in low-single digits in the fiscal second quarter.
Consequently, the Zacks Consensus Estimate has been revised downward. Over the past 60 days, the Zacks Consensus Estimate of $3.70 and $3.97 has decreased 34 cents and 44 cents for fiscal 2016 and fiscal 2017, respectively. Moreover, the Zacks Consensus Estimate for the fiscal second quarter has dropped 12 cents to 56 cents over the same time frame
Other retailers that recently reported comps for June include Zumiez, Inc. (NASDAQ:ZUMZ) and The Buckle, Inc. (NYSE:BKE) . Comps of the companies fell 4.5% and 10.6%, respectively. On the other hand, Costco Wholesale Corporation (NASDAQ:COST) registered flat comps.
ZUMIEZ INC (ZUMZ): Free Stock Analysis Report
BUCKLE INC (BKE): Free Stock Analysis Report
COSTCO WHOLE CP (COST): Free Stock Analysis Report
L BRANDS INC (LB): Free Stock Analysis Report
Original post
Zacks Investment Research