L Brands Q2 sales drop 20 percent

Victoria’s Secret owner L Brands, Inc. has reported second quarter net sales of 2.319 billion dollars, a decrease of 20 percent compared to sales of 2.902 billion dollars for the quarter ended Aug. 3, 2019.

The company said in a statement that its stores were closed during periods of time throughout the second quarter due to the Covid-19 pandemic. As of the end of the second quarter, most Bath & Body Works and Victoria’s Secret stores in North America have reopened.

Reported loss per share for the quarter was 18 cents compared to earnings per share of 14 cents for the quarter ended August 3, 2019. Second quarter operating income was 44 million dollars compared to 174.6 million dollars last year, while net loss was 49.6 million dollars compared to net income of 37.6 million dollars last year.

Victoria’s Secret sales dive in US and Canada

The company added that total Victoria’s Secret second quarter sales in the United States and Canada were 977.5 million dollars, a decrease of 39 percent, while sales at the Victoria’s Secret direct business, which remained open throughout the quarter, increased by 65 percent to 613.9 million dollars and comparable sales decreased 10 percent during the period in which stores were open.

Total Bath & Body Works second quarter sales in the United States and Canada were 1.197 billion dollars, an increase of 13 percent, while sales at the Bath & Body Works direct business, which remained open throughout the quarter, increased by 191 percent to 518.6 million dollars compared to 178.4 million dollars last year. Bath & Body Works second quarter store comparable sales increased 87 percent during the period in which stores were open.

Earlier this month L Brands announced it will be cutting around 15 percent of its head office workforce - or around 850 jobs - in a bid to cut costs amid the Covid-19 pandemic.

Picture:L Brands resources