Investing.com -- Shares in L Brands Inc (NYSE:LB), the parent company of Victoria's Secret and Bath & Body Works, surged nearly 3% in after-hours trading following the release of stronger than expected earnings and profits over its second quarter.
During the second quarter of Fiscal Year 2016, the Columbus, Ohio-based company reported earnings of $252.4 million or 0.87 per share, up considerably from net profits of $202.5 million or 0.68 per share in the same quarter of 2015. At the same time, L Brands finished with net sales of $2.89 billion for the three-month period, representing a 5% increase from revenues of $2.765 billion a year earlier. It came amid a 3% increase in same-store sales for the quarter, in line with consensus estimates. Although the comparable store sales dipped slightly from gains of 4% in last year's second quarter, L Brands avoided the sharp same-store declines that have befallen numerous companies in the retail industry through the first half of the year.
Analysts expected to see revenues of $2.86 billion on earnings per share of 0.59.
Within the report, comparable store sales at Victoria's Secret rose by 2% up slightly from a slight increase of 1% in the Second Quarter of 2015. For the first six months of the year, same store sales at Victoria's Secret were up by 2%, mirroring the comparable store sales at the store over the same stretch last year. In February, L Brands completed a major corporate reshuffling initiative when CEO Leslie Wexner assumed control of the company's core lingerie division.
Additionally, same-store sales at Bath & Body Works increased by 5% on the quarter, down mildly from gains of 6% in the same quarter last year. In total, L Brands' comparable-store sales are up 3% year-to-date, increasing at the same pace as same-store revenues over the first half of 2015. While L Brands increased its third quarter earnings per share outlook to a range between 0.40 and 0.45, the guidance still falls short of analysts' forecasts of 0.47.
L Brands shares gained 2.19 or 2.96% to 76.25 in after-hours trading. Previously, company shares had fallen by 23% over the last year, amid broad signals of declining sales at brick-and-mortar stores throughout the U.S.