L Brands Reports December 2017 Sales and Updates Fourth Quarter Earnings Guidance

As you know from our post on postcards, there are many times that a design element causes a mailing to go at a higher rate of postage. This can be frustrating as well as expensive. In order to help you stay away from potential issues here are some things to keep in mind as you are preparing a direct mail campaign. Now let’s look at Self-Mailers: 1. Self-Mailer size is 5 x 5 to 6 x 10.5, anything larger is not mailable in this category. 2. Paper stock must be a minimum of 70lb, as long as the weight is under an ounce. 3. Keep your aspect ratio between 1.3 and 2.5. 4. There are two options for addressing a self-mailer. Barcode in the address block: 4 x 2 clear area, no varnish, UV coating, text, or images for the address block. 5. There are two kinds of folds horizontal and vertical: For horizontal folds: the final fold is below the mail panel. 6. Tabbing or fugitive glue closures are required: If tabbing: up to 1 ounce mailer needs two 1 inch tabs, mailers over 1 ounce need two 1.5 inch tabs and if you are using perforations or inserts it needs two 2 inch tabs. 7. Poly bag/envelope: If you use a poly bag or envelope your mail will have to go at flat postage rates.

First Quarter Highlights •Consolidated revenue of $152.3 billion, up 7.6%, or 7.7% in constant currency (“cc”)1 •Consolidated gross margin rate declines 18 basis points on mix of sales •Consolidated operating expenses as a percentage of net sales down 58 basis points •Walmart U.S. comp sales up 7.4%3; eCommerce up 27%, led by pickup & delivery

The Postal Regulatory Commission requested information about continued large-scale network changes by the Postal Service despite its announced “pause” in implementing parts of the Delivering for America (DFA) plan. In addition, the Commission asked the Postal Service about the scope and nature of the pilot test described by the Postal Service regarding early DFA efforts in its May 16th response to the Commission’s Show Cause order. The Commission also requested information about the ’recently announced projection of $65 billion in ten-year losses under DFA. The questions are part of the Commission’s public inquiry into the DFA. Commission Chairman Michael Kubayanda noted, “Emerging circumstances and information have reinforced the urgency and importance of understanding the impacts and regulatory implications of DFA before the Postal Service makes further changes that impact service.” National service performance in 2024 has been at historic lows, while locations such as Atlanta continue to suffer service problems, even after some improvement in recent weeks.