L Brands, Inc. (NYSE:LB) today reported second quarter earnings results.
Earnings per share for the second quarter ended July 29, 2017, were $0.48 compared to $0.87 for the quarter ended July 30, 2016. Second quarter operating income was $300.9 million compared to $408.2 million last year, and net income was $138.9 million compared to $252.4 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 decreased 31 percent to $0.48 compared to $0.70 last year, and adjusted net income was $138.9 million compared to $204.7 million last year.
The company reported net sales of $2.755 billion for the second quarter ended July 29, 2017, compared to sales of $2.890 billion for the second quarter ended July 30, 2016. The company reported a comparable sales decrease of 8 percent for the second quarter ended July 29, 2017. For the second quarter ended July 29, 2017, the exit of the swim and apparel categories had a negative impact of about 6 percentage points and 9 percentage points to total company and Victoria’s Secret comparable sales, respectively.
At the conclusion of this press release is a reconciliation of reported to adjusted results, including a description of the significant items.
The second quarter comparable sales decline of 8 percent was below the company’s expectations. Accordingly, the company’s guidance for the remainder of the year reflects a more conservative sales forecast than its previous guidance. The company updated its guidance for 2017 full-year earnings per share to $3.00 to $3.20 from $3.10 to $3.40 previously, and issued guidance for third quarter earnings per share between $0.25 and $0.30.
more detail at: http://investors.lb.com/phoenix.zhtml?c=94854&p=irol-newsArticle&ID=2294295