L Brands (LB) Stock Plunges on Weak Q1 Sales
NEW YORK (TheStreet) -- L Brands (LB) - Get Report stock is falling 9.97% to $72.19 in late morning trading on Thursday after the parent company of Victoria's Secret reported disappointing sales for the fiscal 2016 first quarter.
Before today's market open, the company released a sales update ahead of the release of the full fiscal 2016 first quarter financial report, which has not been scheduled.
The Columbus, OH-based retailer's sales increased 4% year over year to $2.61 billion for the quarter ended April 30, but below estimates of $2.67 billion.
L Brands comparable store sales were up 3%, unchanged from the same quarter last year, with Victoria's Secret comparable sales increasing 2% and Bath & Body Works same store sales rising 6%.
For the month of April, Victoria's Secret same store sales, including direct sales, declined 1% after rising 4% and 2% in February and March, respectively.
Additionally, L Brands expects to report first quarter earnings at the high end of its guidance of 50 cents to 55 cents per share. Wall Street is anticipating 58 cents per share.
Separately, L Brands has a "hold" rating and a letter grade of C+ at TheStreet Ratings because of the company's increase in net income, revenue growth and expanding profit margins, which is offset by disappointing stock performance.
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.
