L Brands Inc (NYSE:LB)late Wednesday posted better than expected third quarter earnings results, but offered a weak third quarter outlook for the pivotal holiday period.
The Columbus, OH-based company reported Q3 EPS of $0.42, beating out Wall Street’s $0.40 estimate by two cents. Revenues rose 4% from last year to $2.58 billion, also edging out analyst estimates of $2.56 billion. LB had issued guidance for the quarter of EPS of $0.40 and revenue of $2.58 billion.Comparable sales in Q3 rose 2%, which was in-line with the company’s guidance published earlier this month. Victoria’s Secret comps fell 1%, while Bath & Body Works rose of 7%.
Looking ahead, the operator of Victoria’s Secret, PINK, Bath & Body Works, La Senza and Henri Bendel retail chains offered disappointing guidance for the all-important holiday quarter. LB expects Q4 EPS to range from $1.85 to $2.00, which could be well short of the $2.02 that analysts are looking for.
L Brands shares declined $0.83 (-1.22%) to $67.10 in after-hours trading Wednesday. Prior to today’s report, LB had fallen 29.22% year-to-date, versus an 6.87% rise in the benchmark S&P 500 during the same period.
