L Brands (LB) Reports 1% Increase in Comps for Oct. 2016; Reaffirms Q3 Outlook

November 3, 2016 7:18 AM EDT

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L Brands, Inc. (NYSE: LB) reported net sales of $756.7 million for the four weeks ended Oct. 29, 2016, an increase of 3 percent, compared to net sales of $735.6 million for the four weeks ended Oct. 31, 2015. Comparable sales increased 1 percent for the four weeks ended Oct. 29, 2016.

The company reported net sales of $2.581 billion for the 13 weeks ended Oct. 29, 2016, an increase of 4 percent compared to net sales of $2.482 billion for the 13 weeks ended Oct. 31, 2015. Comparable sales increased 2 percent for the 13 weeks ended Oct. 29, 2016.

The company reported net sales of $8.085 billion for the 39 weeks ended Oct. 29, 2016, an increase of 4 percent compared to net sales of $7.759 billion for the 39 weeks ended Oct. 31, 2015. Comparable sales increased 3 percent for the 39 weeks ended Oct. 29, 2016.

As previously announced, the company now expects third quarter earnings per share of about $0.40, versus its previous guidance of $0.40 to $0.45 and last year’s result of $0.55. The company will provide fourth quarter earnings guidance when it reports third quarter earnings after the close of the market on Nov. 16. The company will conduct its third quarter earnings call at 9 a.m. Eastern on Nov. 17.

To hear further commentary provided on L Brands’ prerecorded October sales message, call 1-866-639-7583, or log onto www.LB.com for an audio replay.

L BRANDSOCTOBER 2016

Comparable Sales Increase (Decrease) (Stores and Direct):

Oct.2016 Oct.2015 ThirdQuarter2016 ThirdQuarter2015 Year-to-Date2016 Year-to-Date2015
Victoria’s Secret1 (2%) 5% (1%) 6% 1% 3%
Bath & Body Works1 6% 6% 7% 7% 6% 6%
L Brands2 1% 6% 2% 7% 3% 4%

1 – Results include company-owned stores in the U.S. and Canada and direct sales.2 – Results include company-owned stores in the U.S., Canada and the U.K. and direct sales.

Comparable Sales Increase (Decrease) (Stores Only):

Oct.2016 Oct.2015 ThirdQuarter2016 ThirdQuarter2015 Year-to-Date2016 Year-to-Date2015
Victoria’s Secret1 (1%) 5% (2%) 7% 0% 5%
Bath & Body Works1 4% 5% 5% 6% 4% 5%
L Brands2 1% 5% 0% 7% 1% 5%

1 – Results include company-owned stores in the U.S. and Canada.2 – Results include company-owned stores in the U.S., Canada and the U.K.Total Sales (Millions):

Third Quarter 2016 Third Quarter 2015 Year-to-Date 2016 Year-to-Date 2015
Victoria’s Secret Stores1$1,285.9 $1,282.1 $4,136.2 $4,065.3
Victoria’s Secret Direct 298.2 285.4 1,056.1 992.5
Total Victoria’s Secret$1,584.1 $1,567.5 $5,192.3 $5,057.8
Bath & Body Works1$681.6 $637.2 $1,977.4 $1,863.2
Bath & Body Works Direct 88.6 68.3 254.4 203.8
Total Bath & Body Works$770.2 $705.5 $2,231.8 $2,067.0
VS & BBW International2$ 103.7 $ 92.8 $ 298.1 $ 273.0
Other$123.0 $115.8 $362.3 $361.0
L Brands$2,581.0 $2,481.6 $8,084.5 $7,758.8

1 – Results include company-owned stores in the United States and Canada.2 – Results include retail sales from company-owned stores outside of the United States and Canada, royalties associated with franchised stores and wholesale sales.

Total Company-Owned Stores:

Stores Stores
Operating Operating
at 1/30/16 Opened Acquired Closed at 10/29/16
Victoria's Secret U.S. 990 14- (6) 998
PINK U.S. 128 5- (1) 132
Victoria's Secret Canada 37 -- - 37
PINK Canada 9 -- - 9
Total Victoria’s Secret 1,164 19- (7) 1,176
Bath & Body Works U.S. 1,574 23- (5) 1,592
Bath & Body Works Canada 98 4- - 102
Total Bath & Body Works 1,672 27 (5) 1,694
Victoria’s Secret U.K. 12 2- - 14
PINK U.K. 2 1- - 3
Victoria’s Secret Beauty and Accessories - 426 (1) 29
Henri Bendel 29 -- - 29
La Senza U.S. - 3- - 3
La Senza Canada 126 -- (1) 125
Total L Brands Stores 3,005 5626 (14) 3,073

Total Noncompany-Owned Stores:

Stores Stores
Operating Operating
at 1/30/16 Opened Closed Transferred at 10/29/16
Victoria’s Secret Beauty & Accessories 373 43 (9) (26) 381
Victoria’s Secret 16 5 - - 21
PINK 3 2 - - 5
Bath & Body Works 125 26 (1) - 150
La Senza 221 4 (18) - 207
Total 738 80 (28) (26) 764


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