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L Brands Inc. (LB) shares are flying higher in the mid-day trading Thursday on strong financial results for the quarter ended Oct. 31. The results were mainly driven by strong sales at its Bath & Body Works and Victoria’s Secret brand.
The Columbus, Ohio-based retailer reported earnings of $330.6 million, or $1.17 per share for the third quarter, as compared to a loss of $252.0 million, or 91 cents per share in the same period, a year earlier. On an adjusted basis, profit rose to $1.13 per share, well above 2 cents per share in the year-ago quarter, and significantly higher than consensus forecast of 12 cents.
Revenue came in at $3.06 billion, as compared to $2.68 billion in the same quarter of 2019, and easily beating analysts’ average estimate of $2.68 billion.
If we look at the performance of key segments, comparable sales at Bath & Body Works rose 56 percent in the quarter, while comparable sales at Victoria’s Secret jumped 4 percent. The comparable sales numbers exclude periods when stores were closed due to the pandemic.
Speaking on the results, CEO Andrew Meslow said “L Brands reported a record third quarter, driven by exceptional results and continued strength at Bath & Body Works, and a significant improvement in performance at Victoria’s Secret.”
L Brands (NYSE: LB) shares hit a new 52-week high of $39.95 on Thursday, rising more than 15 percent following the results. The stock is currently trading at a heavy volume of 11 million shares versus daily average volume of 4.48 million shares. LB stock value significantly increased during the pandemic. The stock has skyrocketed more than 114 percent on year-to-date basis and over +200 percent over the last 6 months.
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