L Brands earnings fall to 0.33 dollar in Q1

L Brands earnings per share for the first quarter ended April 29, 2017, were 0.33 dollar compared to 0.52 dollar for the quarter ended April 30, 2016. First quarter operating income was 209.2 million dollars compared to 323.4 million dollars last year, and net income was 94.1 million dollars compared to 152.3 million dollars last year.

The company said, reported 2016 results above include pre-tax charges of 34.5 million dollars (0.07 dollar per share) related to actions at Victoria’s Secret, including severance charges, fabric cancellations and the write-off of catalogue paper. Excluding these charges, adjusted first quarter earnings per share were 0.33 dollar compared to 0.59 dollar last year, adjusted operating income was 209.2 million dollars compared to 357.9 million dollars last year, and adjusted net income was 94.1 million dollars compared to 173.7 million dollars last year.

First quarter net sales down 7 percent

The company reported net sales of 2.437 billion dollars for the quarter, a decrease of 7 percent compared to sales of 2.614 billion dollars for the quarter ended April 30, 2016. Comparable sales decreased 9 percent. The company added that for the first quarter, the exit of the swim and apparel categories had a negative impact of 6 percentage points and 9 percentage points to total company and Victoria’s Secret comparable sales, respectively.

The company has raised its guidance for 2017 full-year earnings per share to 3.10 dollars to 3.40 dollars from 3.05 dollars to 3.35 dollars previously, and issued guidance for second quarter earnings per share between 0.40 dollar and 0.45 dollar.

Picture:Victoria's Secret website