U.S. Markets closed

L Brands CEO Les Wexner under pressure as Victoria's Secret parent reports earnings

Thomas Barrabi

Longtime fashion executive Les Wexner’s future at Victoria’s Secret parent L Brands was under scrutiny on Wednesday as the embattled retailer reported third-quarter earnings.

Wexner’s leadership at L Brands has drawn scrutiny in recent months amid a sales slump at Victoria’s Secret, as well as his personal ties to the late sex offender Jeffrey Epstein. L Brands executives face pressure to oust the company founder, FOX Business Senior Correspondent Charlie Gasparino reported.

L Brands reported adjusted earnings per share of 2 cents on revenue of $2.68 billion. Both figures were in line with Wall Street’s expectations, according to data compiled by Refinitiv.

Same-store sales at Victoria’s Secret declined 7percent in the third quarter but grew 9 percent at Bath & Body Works. The results included both physical stores and direct-to-consumer sales.

L Brands shares rose more than 4 percent in after-hours trading.

Victoria’s Secret shuttered dozens of stores as customers favor more comfortable, inclusive fashion trends. The brand closed 38 stores in its fiscal third quarter alone and operated 923 locations as of Nov. 2.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

L Brands opened a total of 56 stores across all of its properties and closed 55 stores.

For the fourth quarter, L Brands said it expects four-quarter earnings per share of about $2.00 and affirmed its full-year guidance range.

Epstein committed suicide in federal prison last August while awaiting trial on child sex trafficking charges. Wexner sought to distance himself from Epstein in September when he said he was "embarrassed" by his ties to the financier. Wexner accused Epstein of misappropriating "vast amounts" of his money.

READ MORE ON FOX BUSINESS BY CLICKING HERE

Related Articles