L Brands Q4 Guidance Disappoints

L Brands (LB) reported third-quarter profit that declined from a year ago and issued light current-quarter guidance this afternoon, exacerbating concerns of a slowdown at its Victoria's Secret brand. 

Shares were down about 2.8% to $66.05 in Tuesday's extended trading session.

After the market close, the parent company of Victoria's Secret and Bath & Body Works said earnings fell 24% year-over-year to 42 cents per share in the third quarter. Profit nonetheless beat the FactSet mean estimate of 40 cents a share.

For the current quarter, L Brands anticipates earnings between $1.85 and $2.00 a share, down from $2.15 a year prior. Analysts surveyed by FactSet were modeling $2.03 a share.

Same-store sales at the company's Victoria's Secret brand declined 1% in the quarter vs. 7% growth in the year-ago period. A 7% increase in same-store sales at Bath & Body Works, however, helped bring total same-store sales growth to 2% for the most recent quarter.

Total revenue of $2.58 billion was in line with analysts' projections.

L Brands will hold a conference call to discuss the results at 9 a.m. EST on Thursday. 

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