L Brands Beats Estimates: Victoria's Secret Management Changes Paying Off
L Brands Inc (NYSE: LB) released its Q2 results after market close on Wednesday. Earnings per share came in above Wall Street consensus expectations, sending shares higher.
L Brands reported EPS of $0.7 and revenues of $2.89 billion. Analyst consensus had an EPS estimate of $0.59 and revenues of $2.86 billion.
L Brands saw Q3 EPS at $0.40-$0.45 vs. estimates of $0.47 and FY16 EPS of $3.70-$3.85 vs. estimates of $3.74. Prior management expectations for FY15 EPS was $3.60-$3.80.
Was Victoria Secret Correct In It's Management Changes?
Comparable sales growth including stores and direct for Victoria's Secret was 2 percent vs. 1 percent year-over-year. L Brands overall had a 3 percent same-store sale growth during Q2 vs. 3 percent last year, same quarter.
Analyst's such as MKM's Roxanne Meyer remained on the sidelines before the earnings release as recent management changes including the departure of Victoria Secret's CEO and promotional changes created uncertainty on the company's future. Victoria's Secret increased growth displayed in this report, however, may push the analyst to have a more positive outlook on the company's management choices in the future.
At time of writing, L Brands traded at $76.00 in Wednesday's after-hours session, up 2.6 percent.
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