L Brands (LB) Stock Slides on July Sales Warning
NEW YORK (TheStreet) -- Shares of L Brands (LB) - Get Report are declining 1.34% to $67.55 in pre-market trading on Thursday after warning that sales might drop this month.
The Victoria's Secret operator said this morning that same-store sales could be flat to down by low single digits in July, according to the Wall Street Journal.
The downbeat outlook is overshadowing better-than-expected same-store sales growth in June. Last month, same-store sales climbed 6% vs. the retailer's expectations for an increase in the low single digits.
By brand, sales rose 6% at Victoria's Secret and 7% at Bath & Body Works, helped by timing shifts to the Memorial Day and Independence Day holidays.
Total sales rose 7% to $1.296 billion in June, up from net sales of $1.21 billion a year ago.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C+.
L Brands' strengths such as its revenue growth, good cash flow from operations and expanding profit margins are countered by weaknesses including unimpressive growth in net income, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.
You can view the full analysis from the report here: LB
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.