L Brands reports wider-than-expected loss in Q1
L Brands announced its first-quarter results after hours on Wednesday, missing on both top and bottom lines. The company offered no guidance for the next quarter but did solidify that it will follow through on its plans to separate Victoria Secret from Bath and Body works. Yahoo Finance’s Jared Blikre breaks down the retailers earnings report on The Final Round.
Video Transcript
JARED BLIKRE: Well, we got a miss on both the top and bottom lines with L Brands. That's a first quarter adjusted loss per share of $0.99. The expectation was for a loss per share of $0.60. And their sales also missed, $1.65 billion, estimate was far higher at $1.79 billion. Somehow, their direct comps managed to come in at 4% when the estimates were 36.9%, probably going to want to get some clarification on exactly how they computed that on the call tomorrow morning at 9:00 AM.
They were saying that they still plan to separate the businesses. They want Victoria's Secret to be an independent company from Bath & Body Works. They want Bath & Body Works to be a pure-play public company. Almost all of their stores have been closed since March 17 due to COVID.
And so then we can look at their direct sales. Victoria's Secret direct sales were $307 million. That's down 15% year over year. Bath & Body Works, their direct sales were $289 million. That's up 85% year over year, and that just shows you the incredible difference between these two businesses.
Looking at the stock, it's up about 1.5% in after-hours trading. Myles.
MYLES UDLAND: All right, Jared Blikre with the latest on what's going on on the earnings front here as first quarter earnings season continues to wind down.
