L Brands (LB) Jan. Comps Increase 7%, Raises Q4 EPS Guidance

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L Brands, Inc. (NYSE: LB) reported net sales of $1.040 billion for the five-week period ended Feb. 3, 2018, compared to sales of $805.2 million for the four-week period ended Jan. 28, 2017. The fifth week in January 2018 represented approximately $150 million in sales and $0.07 in earnings per share. The company reported comparable sales for the five weeks ended Feb. 3, 2018, increased 7 percent compared to the five weeks ended Feb. 4, 2017.

Net sales were $4.823 billion for the 14-week fourth quarter ended Feb. 3, 2018, compared to $4.489 billion for the 13 weeks ended Jan. 28, 2017. Comparable sales for the 14-week fourth quarter ended Feb. 3, 2018, increased 2 percent compared to the 14 weeks ended Feb. 4, 2017.

Net sales were $12.632 billion for the 53-week year ended Feb. 3, 2018, compared to $12.574 billion for the 52 weeks ended Jan. 28, 2017. Comparable sales for the 53 weeks ended Feb. 3, 2018, decreased 3 percent compared to the 53 weeks ended Feb. 4, 2017. For the 53 weeks ended Feb. 3, 2018, the exit of the swim and apparel categories had a negative impact of about 3 percentage points and 5 percentage points to total company and Victoria’s Secret comparable sales, respectively.

Before the effect of any significant items, including the impact of tax reform legislation, the company expects to report fourth quarter earnings per share of about $2.05, compared to its previous guidance of about $2.00. The increase versus the previous guidance relates to a lower projected tax rate of about 34 percent (which does not include any impact from tax reform legislation), compared to guidance of 36.5 percent.

To hear further commentary provided on L Brands’ prerecorded January sales message, call 1-866-639-7583 or log onto www.LB.com for an audio replay. The company will report fourth quarter earnings after the close of the market on Feb. 28, 2018 and will hold its live earnings call on March 1, 2018 at 9 a.m. Eastern.

The company also announced the declaration of its regular quarterly dividend of $0.60 per share payable on March 9, 2018 to shareholders of record at the close of business on Feb. 23, 2018. This is the company’s 173rd consecutive quarterly dividend.


L BRANDS
JANUARY 2018

Comparable Sales Increase (Decrease) (Stores and Direct):
	Jan.2018		Jan.2017		Fourth Quarter2017		FourthQuarter2016		Year2017		Year2016

Victoria’s Secret1	4	%	(10	%)	(1	%)	(3	%)	(8	%)	0	%
Bath & Body Works1	13	%	12	%	6	%	5	%	5	%	6	%
L Brands2	7	%	(4	%)	2	%	0	%	(3	%)	2	%

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, the U.K. and Greater China and direct sales.


Comparable Sales Increase (Decrease) (Stores Only):
	Jan.2018		Jan.2017		Fourth Quarter2017		FourthQuarter2016		Year2017		Year2016

Victoria’s Secret1	0	%	(4	%)	(6	%)	(2	%)	(8	%)	(1	%)
Bath & Body Works1	9	%	11	%	4	%	2	%	2	%	3	%
L Brands2	2	%	0	%	(2	%)	0	%	(4	%)	1	%

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


Total Sales (Millions):
	FourthQuarter 2017(14 weeks)		FourthQuarter 2016(13 weeks)		Year2017(53 weeks)		Year2016(52 weeks)

Victoria’s Secret1	$	2,038.3	$	2,062.7	$	5,878.9	$	6,198.9
Victoria’s Secret Direct		630.6		526.1		1,508.3		1,582.2
Total Victoria’s Secret	$	2,668.9	$	2,588.8	$	7,387.2	$	7,781.1
Bath & Body Works1	$	1,544.6	$	1,422.1	$	3,589.2	$	3,399.5
Bath & Body Works Direct		249.1		197.8		558.7		452.2
Total Bath & Body Works	$	1,793.7	$	1,619.9	$	4,147.9	$	3,851.7
VS & BBW International2	$	170.3	$	124.1	$	502.4	$	422.2
Other	$	190.2	$	156.7	$	594.9	$	519.0
L Brands	$	4,823.1	$	4,489.5	$	12,632.4	$	12,574.0

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


Total Company-Owned Stores:
	Stores				Stores
	Operating				Operating
	at 1/28/17	Opened	Closed		at 2/3/18

Victoria's Secret U.S.	998	5	(19	)	984
PINK U.S.	133	8	(1	)	140
Victoria's Secret Canada	37	2	-		39
PINK Canada	9	-	(2	)	7
Total Victoria’s Secret	1,177	15	(22	)	1,170

Bath & Body Works U.S.	1,591	32	(31	)	1,592
Bath & Body Works Canada	102	-	-		102
Total Bath & Body Works	1,693	32	(31	)	1,694

Victoria’s Secret U.K./Ireland	15	4	-		19
PINK U.K.	3	2	-		5
Victoria’s Secret Beauty and Accessories	31	4	(3	)	32
Victoria’s Secret China	-	7	-		7
Total VS & BBW International	49	17	(3	)	63

Henri Bendel	29	-	(2	)	27
La Senza U.S.	4	1	-		5
La Senza Canada	122	1	(4	)	119
Total L Brands Stores	3,074	66	(62	)	3,078


Total Noncompany-Owned Stores:
	Stores				Stores
	Operating				Operating
	at 1/28/17	Opened	Closed		At 2/3/18

Victoria’s Secret Beauty & Accessories – Travel Retail	152	17	(13	)	156
Bath & Body Works – Travel Retail	8	2	(1	)	9
Victoria’s Secret Beauty & Accessories	239	17	(15	)	241
Victoria’s Secret	23	9	-		32
PINK	5	-	-		5
Bath & Body Works	151	27	(1	)	177
La Senza	203	4	(13	)	194
Total	781	76	(43	)	814

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