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Victoria's Secret parent L Brands expects earnings to exceed expectations, shares rise 7%

Tonya Garcia

L Brands Inc. , whose portfolio of brands includes Victoria's Secret and Bath & Body Works, reported sales of $860.5 million for the four weeks ending Nov. 3, up 8% from the previous year. Same-store sales rose 4% for the period. And for the 13 weeks ending Nov. 3, the company reported sales of $2.78 billion, up 6% from last year. L Brands, is scheduled to report third-quarter earnings on Nov. 21. The FactSet revenue consensus is for sales of $2.70 billion. The company expects a third-quarter loss of 17 cents per share, including a charge of about 32 cents per share related to the Henri Bendel closure. Adjusted EPS is expected to be about 15 cents, ahead of the 5-cent FactSet consensus. The previous L Brands guidance was for breakeven to 5 cents earnings per share. The company attributes the outperformance to Bath & Body Works. L Brands shares rose 7.6% in Thursday premarket trading, but have fallen 42.1% for the year to date. The S&P 500 index is up 5.3% for 2018 so far.