L Brands (NYSE: LB) reported its third quarter financial results after the closing bell on Wednesday. The Company matched earnings estimates, but fell short of revenue expectations. Regardless, shares rallied by 14.7% on Thursday morning.
For the quarter, L Brands reported earnings of USD 0.02 per share on revenue of USD 2.68 Billion. Refinitiv analysts anticipated earnings of USD 0.02 per share on revenue of USD 2.69 Billion.
Revenue decreased compared USD 2.77 Billion in the third quarter of 2018, primarily dragged by declines in L Brands’ Victoria's Secret segment. The segment reported total revenues of USD 1.41 Billion compared to USD 1.52 Billion a year ago. Meanwhile, Bath & Body Works reported total revenues of USD 1.06 Billion, increasing from USD 956.2 Million a year ago.
Total comparable sales for the quarter was down 2% versus a 4% growth a year ago. Victoria’s Secret reported comparable sales decrease of 7%, widening from 2% a year ago. Bath & Body Works reported comparable sales growth of 9%, slowing from a 13% growth a year ago.
Net losses for the quarter continued to widen to USD 252 Million compared to USD 42.8 Million the same quarter a year ago.
At the end of the quarter, L Brands’ had 1,111 stores operating. The Company opened six stores and closed a total of 38 since February this year. On the other hand, Bath & Body Works opened a total of 35 stores, while closing 12, pushing the total number of locations to 1,744.
L Brands’ international stores totaled 89 at the end of the quarter. Since February, L Brands’ opened 15 international stores, while closing 5.
For the fourth quarter, L Brands is expecting adjusted earnings of approximately USD 2.00 per share, which would result in a full-year earnings of USD 2.40 per share compared to its previous estimates range of USD 2.30 to USD 2.60 per share.
Despite the Thursday morning rally, L Brands’ shares are still down 30.8% this year.