– UPDATES FOURTH QUARTER EARNINGS
GUIDANCE –
L Brands, Inc. (NYSE:LB) reported net sales for the four-week
period ended Jan. 28, 2017, were $805.2 million, a decrease of 1
percent compared to sales of $811.3 million for the four-week
period ended Jan. 30, 2016. Comparable sales for the four
weeks ended Jan. 28, 2017, decreased 4 percent. For January,
the exit of the swim and apparel categories had a negative impact
of 5 percentage points and 7 percentage points to total company and
Victoria’s Secret comparable sales, respectively.
Net sales for the fourth quarter ended Jan. 28,
2017, were $4.489 billion, an increase of 2 percent compared to
$4.395 billion for the quarter ended Jan. 30, 2016.
Comparable sales for the fourth quarter ended Jan. 28, 2017, were
flat. For the fourth quarter, the exit of the swim and
apparel categories had a negative impact of 2 percentage points and
4 percentage points to total company and Victoria’s Secret
comparable sales, respectively.
Net sales for the year ended Jan. 28, 2017, were
$12.574 billion, an increase of 3 percent compared to $12.154
billion for the year ended Jan. 30, 2016. Comparable sales
for the year ended Jan. 28, 2017, increased 2 percent. For
the year, the exit of the swim and apparel categories had a
negative impact of 2 percentage points and 3 percentage points to
total company and Victoria’s Secret comparable sales,
respectively.
The company expects to report fourth quarter
earnings per share of about $1.90, versus its previous guidance for
the low end of its initial guidance of $1.85 to $2.00. The
company will report actual fourth quarter results on its earnings
call, which will be held on Feb. 23 at 9 a.m. Eastern.
Dividend and Share RepurchaseThe company
announced today the declaration of its regular quarterly dividend
of $0.60 per share payable on March 3, 2017, to shareholders of
record at the close of business on Feb. 17, 2017. This is the
company’s 169th consecutive quarterly dividend.
Additionally, the company has authorized a new
$250 million share repurchase program, which includes the remaining
$62 million outstanding under the previous program. The
company repurchased $438 million of stock in 2016.
Repurchases will be made at the times, in the amounts and in the
manner that the company believes appropriate.
To hear further commentary provided on L Brands’
prerecorded January sales message, call 1-866-639-7583 or log onto
www.LB.com for an audio replay.
ABOUT L BRANDS:L Brands, through
Victoria’s Secret, PINK, Bath & Body Works, La Senza and Henri
Bendel, is an international company. The company operates
3,077 company-owned specialty stores in the United States, Canada,
the United Kingdom and Greater China, and its brands are sold in
more than 700 additional franchised locations worldwide. The
company’s products are also available online at
www.VictoriasSecret.com, www.BathandBodyWorks.com,
www.HenriBendel.com and www.LaSenza.com.
Safe Harbor Statement Under the Private
Securities Litigation Reform Act of 1995We caution that
any forward-looking statements (as such term is defined in the
Private Securities Litigation Reform Act of 1995) contained in this
press release or the January sales call or made by our company or
our management involve risks and uncertainties and are subject to
change based on various factors, many of which are beyond our
control. Accordingly, our future performance and financial results
may differ materially from those expressed or implied in any such
forward-looking statements. Words such as “estimate,” “project,”
“plan,” “believe,” “expect,” “anticipate,” “intend,” “planned,”
“potential” and any similar expressions may identify
forward-looking statements. Risks associated with the following
factors, among others, in some cases have affected and in the
future could affect our financial performance and actual results
and could cause actual results to differ materially from those
expressed or implied in any forward-looking statements included in
this press release or the January sales call or otherwise made by
our company or our management:
- general economic conditions, consumer confidence, consumer
spending patterns and market disruptions including severe weather
conditions, natural disasters, health hazards, terrorist
activities, financial crises, political crises or other major
events, or the prospect of these events;
- the seasonality of our business;
- the dependence on mall traffic and the availability of suitable
store locations on appropriate terms;
- our ability to grow through new store openings and existing
store remodels and expansions;
- our ability to successfully expand internationally and related
risks;
- our relationships with independent franchise, license and
wholesale partners;
- our direct channel businesses;
- our ability to protect our reputation and our brand
images;
- our ability to attract customers with marketing, advertising
and promotional programs;
- our ability to protect our trade names, trademarks and
patents;
- the highly competitive nature of the retail industry and the
segments in which we operate;
- consumer acceptance of our products and our ability to keep up
with fashion trends, develop new merchandise and launch new product
lines successfully;
- our ability to source, distribute and sell goods and materials
on a global basis, including risks related to:
-- political instability,
significant health hazards, environmental hazards or natural
disasters; -- duties, taxes and other
charges; -- legal and regulatory
matters; -- volatility in currency
exchange rates; -- local business
practices and political issues; --
potential delays or disruptions in shipping and transportation and
related pricing impacts; -- disruption
due to labor disputes; and -- changing
expectations regarding product safety due to new legislation;
- our geographic concentration of supplier and distribution
facilities in central Ohio;
- fluctuations in foreign currency exchange rates;
- stock price volatility;
- our ability to pay dividends and related effects;
- our ability to maintain our credit rating;
- our ability to service or refinance our debt;
- our ability to retain key personnel;
- our ability to attract, develop and retain qualified employees
and manage labor-related costs;
- the ability of our manufacturers to deliver products in a
timely manner, meet quality standards and comply with applicable
laws and regulations;
- fluctuations in product input costs;
- fluctuations in energy costs;
- increases in the costs of mailing, paper and printing;
- claims arising from our self-insurance;
- our ability to implement and maintain information technology
systems and to protect associated data;
- our ability to maintain the security of customer, associate,
supplier or company information;
- our ability to comply with regulatory requirements;
- legal and compliance matters; and
- tax matters.
We are not under any obligation and do not intend to make
publicly available any update or other revisions to any of the
forward-looking statements contained in this press release or the
January sales call to reflect circumstances existing after the date
of this press release or to reflect the occurrence of future events
even if experience or future events make it clear that any expected
results expressed or implied by those forward-looking statements
will not be realized. Additional information regarding these and
other factors can be found in Item 1A. Risk Factors in our 2015
Annual Report on Form 10-K.
L BRANDSJANUARY
2017
Comparable Sales Increase (Decrease) (Stores and
Direct):
|
Jan.2017 |
|
Jan.2016 |
|
Fourth Quarter2016 |
|
FourthQuarter2015 |
|
Year2016 |
|
Year2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Victoria’s Secret1 |
(10 |
%) |
|
2 |
% |
|
(3 |
%) |
|
7 |
% |
|
0 |
% |
|
5 |
% |
|
Bath & Body Works1
|
12 |
% |
|
3 |
% |
|
5 |
% |
|
7 |
% |
|
6 |
% |
|
7 |
% |
|
L
Brands2 |
(4 |
%) |
|
2 |
% |
|
0 |
% |
|
8 |
% |
|
2 |
% |
|
5 |
% |
|
1 – Results include company-owned stores in the U.S. and Canada
and direct sales.2 – Results include company-owned stores in the
U.S., Canada and the U.K. and direct sales.
Comparable Sales Increase (Decrease) (Stores
Only):
|
Jan.2017 |
|
Jan.2016 |
|
Fourth Quarter2016 |
|
FourthQuarter2015 |
|
Year2016 |
|
Year2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Victoria’s Secret1 |
(4 |
%) |
|
(4 |
%) |
|
(2 |
%) |
|
5 |
% |
|
(1 |
%) |
|
5 |
% |
|
Bath & Body Works1
|
11 |
% |
|
2 |
% |
|
2 |
% |
|
6 |
% |
|
3 |
% |
|
5 |
% |
|
L
Brands2 |
0 |
% |
|
(2 |
%) |
|
0 |
% |
|
6 |
% |
|
1 |
% |
|
5 |
% |
|
1 – Results include company-owned stores in the U.S. and
Canada.2 – Results include company-owned stores in the U.S., Canada
and the U.K.
Total Sales (Millions):
|
Fourth Quarter 2016 |
|
Fourth Quarter 2015 |
|
Year2016 |
|
Year 2015 |
|
|
|
|
|
|
|
|
Victoria’s Secret
Stores1 |
$ |
2,062.7 |
|
$ |
2,047.2 |
|
$ |
6,198.9 |
|
$ |
6,112.5 |
Victoria’s Secret
Direct |
|
526.1 |
|
|
567.1 |
|
|
1,582.2 |
|
|
1,559.6 |
Total
Victoria’s Secret |
$ |
2,588.8 |
|
$ |
2,614.3 |
|
$ |
7,781.1 |
|
$ |
7,672.1 |
Bath & Body
Works1 |
$ |
1,422.1 |
|
$ |
1,361.8 |
|
$ |
3,399.5 |
|
$ |
3,225.0 |
Bath & Body Works
Direct |
|
197.8 |
|
|
157.8 |
|
|
452.2 |
|
|
361.6 |
Total
Bath & Body Works |
$ |
1,619.9 |
|
$ |
1,519.6 |
|
$ |
3,851.7 |
|
$ |
3,586.6 |
VS & BBW
International2 |
$ |
124.1 |
|
$ |
112.3 |
|
$ |
422.2 |
|
$ |
385.2 |
Other |
$ |
156.7 |
|
$ |
148.8 |
|
$ |
519.0 |
|
$ |
509.9 |
L
Brands |
$ |
4,489.5 |
|
$ |
4,395.0 |
|
$ |
12,574.0 |
|
$ |
12,153.8 |
1 – Results include company-owned stores in the United States
and Canada.2 – Results include retail sales from company-owned
stores outside of the United States and Canada, royalties
associated with franchised stores and wholesale sales.
Total Company-Owned Stores:
|
|
Stores |
|
|
|
|
|
Stores |
|
|
Operating |
|
|
|
|
|
Operating |
|
|
at 1/30/16 |
Opened |
Acquired |
Closed |
at 1/28/17 |
|
|
|
|
|
|
|
Victoria's Secret
U.S. |
|
990 |
17 |
- |
(9 |
) |
998 |
PINK U.S. |
|
128 |
6 |
- |
(1 |
) |
133 |
Victoria's Secret
Canada |
|
37 |
- |
- |
- |
|
37 |
PINK Canada |
|
9 |
- |
- |
- |
|
9 |
Total Victoria’s
Secret |
|
1,164 |
23 |
- |
(10 |
) |
1,177 |
|
|
|
|
|
|
|
Bath & Body Works
U.S. |
|
1,574 |
30 |
- |
(13 |
) |
1,591 |
Bath & Body Works
Canada |
|
98 |
5 |
- |
(1 |
) |
102 |
Total Bath &
Body Works |
|
1,672 |
35 |
|
(14 |
) |
1,693 |
|
|
|
|
|
|
|
Victoria’s Secret
U.K. |
|
12 |
3 |
- |
- |
|
15 |
PINK U.K. |
|
2 |
1 |
- |
- |
|
3 |
Victoria’s Secret
Beauty and Accessories |
|
- |
6 |
26 |
(1 |
) |
31 |
Henri Bendel |
|
29 |
- |
- |
- |
|
29 |
La Senza U.S. |
|
- |
4 |
- |
- |
|
4 |
La Senza Canada |
|
126 |
- |
- |
(1 |
) |
125 |
Total L Brands
Stores |
|
3,005 |
72 |
26 |
(26 |
) |
3,077 |
Total Noncompany-Owned Stores:
|
|
Stores |
|
|
|
|
|
Stores |
|
|
Operating |
|
|
|
|
|
Operating |
|
|
at 1/30/16 |
Opened |
Closed |
Transferred |
at 1/28/17 |
|
|
|
|
|
|
|
Victoria’s Secret
Beauty & Accessories |
|
373 |
56 |
(12 |
) |
(26 |
) |
391 |
Victoria’s Secret |
|
16 |
7 |
- |
|
- |
|
23 |
PINK |
|
3 |
2 |
- |
|
- |
|
5 |
Bath & Body
Works |
|
125 |
36 |
(2 |
) |
- |
|
159 |
La Senza |
|
221 |
6 |
(24 |
) |
- |
|
203 |
Total |
|
738 |
107 |
(38 |
) |
(26 |
) |
781 |
|
|
|
|
|
|
|
For further information, please contact:
L Brands:
Investor Relations
Amie Preston
(614) 415-6704
apreston@lb.com
Media Relations
Tammy Roberts Myers
(614) 415-7072
communications@lb.com
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