COLUMBUS, Ohio, 2016-Aug-19 — /EPR Retail News/ — L Brands, Inc. (NYSE:LB) today (Aug. 17, 2016) reported 2016 second quarter results.
Second Quarter Results
Earnings per share for the second quarter ended July 30, 2016 , were $0.87 compared to $0.68 for the quarter ended Aug. 1 , 2015. Second quarter operating income increased 1 percent to $408.2 million compared to $402.9 million last year, and net income was $252.4 million compared to$202.5 million last year.
The reported results above include certain significant items as detailed below:
- In 2016:
- A pre-tax gain of $108.3 million ( $0.24 per share) related to a cash distribution from Easton Town Center; and
- A pre-tax charge of $35.8 million ( $0.08 per share) related to the early extinguishment of the company’s July 2017 notes
Excluding the significant items above, adjusted second quarter earnings per share increased 3% to$0.70 compared to $0.68 last year, and adjusted net income increased 1% to $204.7 million compared to $202.5 million last year.
The company reported net sales of $2.890 billion for the second quarter ended July 30, 2016 , an increase of 5 percent compared to net sales of $2.765 billion for the quarter ended Aug. 1 , 2015. The company reported a comparable sales increase of 3 percent for the second quarter ended July 30, 2016 .
At the conclusion of this press release is a reconciliation of reported to adjusted results, including a description of the significant items.
The company stated that it expects 2016 third quarter earnings per share to be $0.40 to $0.45 . It expects to report full-year earnings per share between $3.79 and $3.94 , which includes a net$0.09 per share from year-to-date significant items as detailed in the attached reconciliation of reported to adjusted results. Excluding these items, the company expects to report full-year adjusted earnings per share between $3.70 and $3.85 , versus its previous guidance of $3.60 to $3.80 .
Earnings Call Information
L Brands will conduct its second quarter earnings call at 9 a.m. Eastern on Aug. 18. To listen, call 1-866-363-4673 (international dial-in number: 1-973-200-3978). For an audio replay, call 1-855-859-2056 (conference ID 33156271) (international replay number: 1-404-537-3406 (conference ID 33156271)) or log onto www.LB.com. Additional second quarter financial information is also available at www.LB.com.
ABOUT L BRANDS :
L Brands , through Victoria’s Secret, PINK, Bath & Body Works, La Senza and Henri Bendel , is an international company. The company operates 3,052 company-owned specialty stores in the United States , Canada , the United Kingdom and Greater China , and its brands are sold in more than 700 additional franchised locations worldwide. The company’s products are also available online at www.VictoriasSecret.com, www.BathandBodyWorks.com, www.HenriBendel.com and www.LaSenza.com.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
We caution that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this press release or the second quarter earnings call or made by our company or our management involve risks and uncertainties and are subject to change based on various factors, many of which are beyond our control. Accordingly, our future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Words such as “estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “planned,” “potential” and any similar expressions may identify forward-looking statements. Risks associated with the following factors, among others, in some cases have affected and in the future could affect our financial performance and actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements included in this press release or the second quarter earnings call or otherwise made by our company or our management:
- general economic conditions, consumer confidence, consumer spending patterns and market disruptions including severe weather conditions, natural disasters, health hazards, terrorist activities, financial crises, political crises or other major events, or the prospect of these events;
- the seasonality of our business;
- the dependence on mall traffic and the availability of suitable store locations on appropriate terms;
- our ability to grow through new store openings and existing store remodels and expansions;
- our ability to successfully expand internationally and related risks;
- our relationships with independent franchise, license and wholesale partners;
- our direct channel businesses;
- our ability to protect our reputation and our brand images;
- our ability to attract customers with marketing, advertising and promotional programs;
- our ability to protect our trade names, trademarks and patents;
- the highly competitive nature of the retail industry and the segments in which we operate;
- consumer acceptance of our products and our ability to keep up with fashion trends, develop new merchandise and launch new product lines successfully;
- our ability to source, distribute and sell goods and materials on a global basis, including risks related to:
- political instability, significant health hazards, environmental hazards or natural disasters;
- duties, taxes and other charges;
- legal and regulatory matters;
- volatility in currency exchange rates;
- local business practices and political issues;
- potential delays or disruptions in shipping and transportation and related pricing impacts;
- disruption due to labor disputes; and
- changing expectations regarding product safety due to new legislation;
- our geographic concentration of supplier and distribution facilities in central Ohio ;
- fluctuations in foreign currency exchange rates;
- stock price volatility;
- our ability to pay dividends and related effects;
- our ability to maintain our credit rating;
- our ability to service or refinance our debt;
- our ability to retain key personnel;
- our ability to attract, develop and retain qualified employees and manage labor-related costs;
- the ability of our manufacturers to deliver products in a timely manner, meet quality standards and comply with applicable laws and regulations;
- fluctuations in product input costs;
- fluctuations in energy costs;
- increases in the costs of mailing, paper and printing;
- claims arising from our self-insurance;
- our ability to implement and maintain information technology systems and to protect associated data;
- our ability to maintain the security of customer, associate, supplier or company information;
- our ability to comply with regulatory requirements;
- legal and compliance matters; and
- tax matters.
We are not under any obligation and do not intend to make publicly available any update or other revisions to any of the forward-looking statements contained in this press release or the second quarter earnings call to reflect circumstances existing after the date of this press release or to reflect the occurrence of future events even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized. Additional information regarding these and other factors can be found in Item 1A. Risk Factors in our 2015 Annual Report on Form 10-K.
Tammy Roberts Myers
Source: L Brands Inc