L Brands Inc. shares hit 52-week high on strong quarterly performance
On an adjusted basis, profit rose to $1.13 per share, significantly higher than consensus forecast of 12 cents.

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. 

Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Published On
2020-11-19 13:30

About the Author
Staff or Guest writer for The Dog of Wall Street.


Burlington Stores hints at weak start to the fourth quarter, shares down
Same-store sales declined 11 percent in the quarter, less than a drop of 16.3 percent projected by analysts.
By Staff | 16 hours ago

Pandemic drives online revenue of Best Buy Co. to new highs in the third quarter
Comparable online sales in the U.S. skyrocketed more than 173 percent on a year-over-year basis.
By Staff | 17 hours ago

Dick's Sporting Goods crushes analysts’ expectations for third-quarter profit
On an adjusted basis, profit rose to $2.01, easily beating analysts’ average estimate of $1.08 per share.
By Staff | 18 hours ago

Abercrombie & Fitch shares turn red despite beating consensus expectation for Q3
On an adjusted basis, profit rose to 76 cents per share, while analysts on average were expecting the company to report a loss of 4 cents per share.
By Staff | 19 hours ago

Dollar Tree shares hit 52-week high on strong quarterly performance
Same-store sales jumped by 5.1 percent on a year-over-year basis, beating the analysts’ average forecast of 4.7 percent growth.
By Staff | 20 hours ago

Snap Inc. shares rally on the roll-out of a new feature
Snap is initially launching Spotlight in 11 countries including the United States and Canada, with a plan to add more in the coming time.
By Staff | 1 day ago