- L Brands is set to report fourth-quarter earnings after Wednesday’s closing bell.
- Analysts are expecting adjusted earnings of $US2.08 a share on $US4.92 billion revenue.
- Watch L Brands trade live.
L Brands, the owner of Victoria’s Secret, is set to report fourth-quarter earnings after Wednesday’s closing bell.
Here is what analysts surveyed by Bloomberg are expecting:
- Adjusted earnings per share: $US2.08
- Revenue: $US4.92 billion
Earlier this month, L Brands reported that total comparable sales (including stores and direct) at its flagship brand, Victoria’s Secret, declined 1% in January, driven by an 8% drop in store-only comps. That was below the Wall Street consensus of a 1% increase, according to UBS.
The company also announced that its quarterly dividend will be $US0.30 a share in the first quarter, less than half of the $US0.61 paid last quarter.
“The brands are not wanted anymore,” Jefferies analyst Randal Konik, a long-term bear on Victoria’s Secret and L Brands, said in February.
“Keep in mind that comps remain negative despite very high promos, which means true brand demand is even worse than reported as some consumers buy things when they are given away for free or marked down by more than 50-75%.”
Konik has an “underperform” rating and $US21 price target for L Brands – 24% below where shares were trading Wednesday.
L Brands was up 5% this year.
- Victoria’s Secret is basically giving things away for free – but it’s not working (LB)
- A ‘scary’ development is taking place at Victoria’s Secret
- RBC: Victoria’s Secret is trading at ‘negative value’
- Victoria’s Secret is broken and its Pink franchise is in the ‘early innings’ of a long decline
- The Victoria’s Secret fashion show illustrates ‘how out of touch the brand still is’
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