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L Brands posts Q4 loss, comparable sales drop 2 percent

By Prachi Singh

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Business

L Brands, Inc. reported a loss per share of 70 cents for the fourth quarter ended February 1, 2020, compared to earnings per share of 1.94 dollars for the quarter ended February 2, 2019. The company said in a statement that fourth quarter operating income was 81.7 million dollars compared to 799.4 million dollars last year and the net loss was 192.3 million dollars compared to 540.1 million dollars last year.

The company’s adjusted earnings per share were 1.88 dollars compared to 2.14 dollars last year, adjusted operating income was 806.7 million dollars compared to 898.7 million dollars last year, and adjusted net income was 523.7 million dollars compared to 595.2 million dollars last year. The company reported net sales of 4.707 billion dollars for the fourth quarter compared to 4.852 billion dollars in the same quarter ended February 2, 2019, while comparable sales decreased 2 percent.

L Brands reports full-year loss per share of 1.33 dollars

The company reported a loss per share of 1.33 dollars for the year ended February 1, 2020, compared to earnings per share of 2.31 dollars for the year ended February 2, 2019. The company’s full-year operating income was 258.4 million dollars compared to 1.237 billion dollars last year, and the net loss was 366.4 million dollars compared to net income of 643.9 million dollars last year.

The company added that adjusted full-year earnings per share were 2.29 dollars compared to 2.82 dollars last year; adjusted operating income was 1.231 billion dollars compared to 1.437 billion dollars last year; and adjusted net income was 637.3 million dollars compared to 786.7 million dollars last year. Net sales were 12.914 billion dollars for the year compared to 13.237 billion dollars for the year ended February 2, 2019, while comparable sales decreased 1 percent.

Performance of L Brands’ business segments

For the year, Bath & Body Works North America segment comparable sales increased 10 percent, including a 5 percent increase in stores and a 32 percent increase in the direct business. Sales increased 12 percent to 5.170 billion dollars and operating income increased 11 percent to 1.191 billion dollars.

In the Victoria’s Secret North America segment, sales for the full year declined 8 percent to 6.805 billion dollars, on a comparable sales decline of 7 percent. The full-year reported operating loss was 616.1 million dollars.

The company currently expects a 2020 first quarter adjusted loss per share of about 5 cents. The company further said that it will not provide guidance for the full year at this time due to the pending transaction with Sycamore Partners, but the company’s guidance for the first quarter 2020 includes the Victoria’s Secret business.

Picture:L Brands media assets

Bath & Body Works
L BRANDS
Victoria's Secret