U.S. Markets closed

Earnings Highlights and Review: L Brands' Top- and Bottom-Line Numbers Outperformed Expectations

Research Desk Line-up: Urban Outfitters Post Earnings Coverage

LONDON, UK / ACCESSWIRE / June 6, 2017 / Pro-Trader Daily publishes post-earnings coverage on L Brands, Inc. (NYSE: LB) following the Company's release of its first quarter fiscal 2017 financial results on May 17, 2017. The specialty retailer of women's intimate and other apparel increased its outlook for fiscal year 2017 earnings. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

http://protraderdaily.com/register/

Get more of our free earnings reports coverage from other constituents of the Apparel Stores industry. Pro-TD has currently selected Urban Outfitters, Inc. (NASDAQ: URBN) for due-diligence and potential coverage as the Company announced on May 16, 2017, its financial results for Q1 which ended on April 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Urban Outfitters when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on LB; also brushing on URBN. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=LB

http://protraderdaily.com/optin/?symbol=URBN

Earnings Reviewed

L Brands reported net sales of $2.44 billion for the first quarter ended April 29, 2017, a decrease of 7% compared to sales of $2.61 billion for Q1 2016. The Company's revenue number exceeded analysts' consensus estimates of $2.40 billion

During Q1 2017, L Brands' comparable sales fell 9%. For the reported quarter, the exit of the swim and apparel categories had a negative impact of 6% and 9% to total Company and Victoria's Secret comparable sales, respectively.

For Q1 2017, L Brands' operating income was $209.2 million compared to $323.4 million in Q1 2016, while the Company's net income was $94.1 million compared to $152.3 million in the prior year's same quarter. L Brands' earnings per share were $0.33 for Q1 2017 compared to $0.52 for Q1 2016.

The Company's Q1 2016 results included pre-tax charges of $34.5 million, or $0.07 per share, related to actions at Victoria's Secret, including severance charges, fabric cancellations, and the write-off of catalogue paper. Excluding these charges, the Company's adjusted earnings for the reported quarter were $0.33 per share compared to $0.59 in the prior year's comparable quarter, and adjusted net income totaled $94.1 million compared to $173.7 million in the year ago same period. L Brands' earnings surpassed Wall Street's expectations of $0.29 per share.

Segment Results

During Q1 2017, L Brands' sales at Victoria's Secret Stores declined 10% to $1.25 billion compared to sales of $1.38 billion in Q1 2016, while Victoria's Secret Direct sales totaled $286.5 million compared to $359.7 million in the prior year's corresponding quarter. Total Victoria's Secret sales for Q1 2017 were $1.53 billion compared to $1.74 billion in Q1 2016. The segment's comparable sales declined 14% on a y-o-y basis.

For Q1 2017, L Brands' Bath & Body Works' segment recorded sales of $678 million compared to sales of $660.2 million in Q1 2016. The segment's comparable sales grew 2% in the reported quarter versus growth of 6% in the prior year's same quarter.

Store Update

During Q1 2017, L Brands opened two Victoria's Secret outlet, while it closed one store in the reported quarter. As of April 29, 2017, the segment's operating stores count totaled 1,178 stores. For the reported quarter, L Brands opened seven Bath & Body Works stores, while it shut down three outlets, taking the overall total for the segment to 1,697 stores.

Cash Matters

As of April 29, 2017, L Brands had cash and cash equivalents of $1.55 billion compared to $1.27 billion as on April 30, 2016. The Company's long-term debt decreased to $5.70 billion at the end of the reported quarter compared to $5.72 billion at the end of the year ago same quarter.

Cash Flow

On May 19, 2017, L Brands announced the declaration of its regular quarterly dividend of $0.60 per share payable on June 16, 2017, to shareholders of record at the close of business on June 02, 2017. This is the Company's 170th consecutive quarterly dividend.

2017 Outlook

L Brands increased its guidance for 2017 full-year earnings per share to $3.10 to $3.40 from the previously announced number of $3.05 to $3.35. For Q2 2017, the Company is projecting earnings in the range of $0.40 and $0.45.

Stock Performance

On Monday, June 05, 2017, L Brands' stock closed the trading session at $51.87, slipping 1.11% from its previous closing price of $52.45. A total volume of 2.70 million shares have exchanged hands. In the last month and previous three months, shares of the Company have advanced 4.92% and 0.84%, respectively. The stock is trading at a PE ratio of 13.71 and has a dividend yield of 4.63%. The stock currently has a market cap of $14.88 billion.

Pro-Trader Daily:

Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: contact@protraderdaily.com

Phone number: (917) 341.4653

Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Pro-Trader Daily