Click here to close now.

SYS-CON MEDIA Authors: JP Morgenthal, AppDynamics Blog, John Wetherill, Harry Trott, Roger Strukhoff

News Feed Item

L Brands Reports Second Quarter 2014 Earnings

-- PROVIDES THIRD QUARTER AND RAISES FULL-YEAR 2014 EARNINGS GUIDANCE --

COLUMBUS, Ohio, Aug. 20, 2014 /PRNewswire/ -- L Brands, Inc. (NYSE: LB) today reported 2014 second quarter results.

Second Quarter Results

Earnings per share for the second quarter ended Aug. 2, 2014, were $0.63 compared to $0.61 for the quarter ended Aug. 3, 2013.  Second quarter operating income increased 5 percent to $375.9 million compared to $357.8 million last year, and net income was $188.4 million compared to $178.9 million last year. 

The company reported net sales of $2.675 billion for the 13 weeks ended Aug. 2, 2014, an increase of 6 percent compared to sales of $2.516 billion for the 13 weeks ended Aug. 3, 2013.  The company reported a comparable store sales increase of 3 percent for the 13 weeks ended Aug. 2, 2014.

2014 Outlook

The company stated that it expects 2014 third quarter earnings per share to be $0.26 to $0.31, and raised its full-year earnings forecast to $3.03 to $3.18 per share from $3.00 to $3.15 previously, which includes the previously announced estimated full-year negative impact of about $0.10 to $0.12 ($0.03 to $0.04 in the third quarter) related to the exit of certain non-core categories in the Victoria's Secret direct and beauty businesses to allow the brand to focus on faster growing, more profitable product lines.

Earnings Call Information

L Brands will conduct its second quarter earnings call at 9 a.m. Eastern on Aug. 21.  To listen, call 1-866-583-6618 (international dial-in number: 1-937-200-3978).  For an audio replay, call 1-866-639-7583 (international replay number: 1-706-902-3452) or log onto www.LB.com.  Additional second quarter financial information is also available at www.LB.com.

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 2,942 company-owned specialty stores in the United States, Canada and the United Kingdom, and its brands are sold in about 600 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 1995

L Brands, Inc. cautions 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 second quarter earnings call 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 second quarter earnings call:

  • 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 a high volume of 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 into global markets and related risks;
  • our relationships with independent licensees and franchisees;
  • our direct channel businesses;
  • our failure to protect our reputation and our brand images;
  • our failure to protect our trade names, trademarks and patents;
  • the highly competitive nature of the retail industry generally and the segments in which we operate particularly;
  • 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;
    • 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;
  • fluctuations in foreign currency exchange rates;
  • stock price volatility;
  • our failure 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 inability of our manufacturers to deliver products in a timely manner and meet quality standards;
  • 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 failure to maintain the security of customer, associate, supplier or company information;
  • our failure to comply with regulatory requirements;
  • tax matters; and
  • legal and compliance 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 second quarter earnings call to reflect circumstances existing after the date of this report 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 2013 Annual Report on Form 10-K.


L BRANDS
SECOND QUARTER 2014


Comparable Store Sales Increase (Decrease):




Second

Quarter

2014


Second

Quarter

2013


Year-

to-

Date

2014


Year-

to-

Date

2013










Victoria's Secret1


3%


1%


3%


2%

Bath & Body Works1


3%


3%


3%


3%

L Brands


3%


2%


3%


2%

Victoria's Secret

Direct Sales


 

0%


 

(6%)


 

0%


 

(6%)

1 – Results include company-owned stores in the United States and Canada.

Total Sales (Millions):



 

Second

Quarter

 2014


Second

Quarter

 2013


Year-

to-

Date

 2014


Year-

to-

Date

 2013









Victoria's Secret Stores1

$ 1,363.0


$ 1,281.6


$ 2,608.4


$ 2,466.3

Victoria's Secret Direct

382.4


383.7


740.6


742.7

  Total Victoria's Secret

$ 1,745.4


$ 1,665.3


$ 3,349.0


$ 3,209.0

Bath & Body Works1

$ 638.3


$ 611.3


$ 1,168.5


$ 1,128.5

Bath & Body Works Direct

66.4


56.6


117.8


100.3

  Total Bath & Body Works

$ 704.7


$ 667.9


$ 1,286.3


$ 1,228.8

VS & BBW International2

$  79.3


$  46.3


$  150.3


$  86.7

Other

$ 145.9


$ 136.5


$ 280.9


$ 259.4

L Brands

$ 2,675.3


$ 2,516.0


$ 5,066.5


$ 4,783.9

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 2/1/14

Opened

  Closed

at 8/2/14







Victoria's Secret U.S.


977

3

(2)

978

PINK U.S.


83

15

(1)

97

Victoria's Secret Canada


24

4

-

28

PINK Canada


10

-

-

10

   Total Victoria's Secret


1,094

22

(3)

1,113







Bath & Body Works U.S.


1,559

4

(8)

1,555

Bath & Body Works Canada 


79

7

(1)

85

   Total Bath & Body Works


1,638

11

(9)

1,640







Victoria's Secret U.K.


5

2

-

7

Henri Bendel


29

-

-

29

La Senza Canada


157

-

(4)

153

Total L Brands Stores


2,923

35

(16)

2,942

 

Total Franchise Stores:



Stores


Stores


Operating


Operating


at 2/1/14

Opened

Closed

at 8/2/14






Victoria's Secret Beauty & Accessories

198

34

(2)

230

VS International (Full Assortment)

4

4

-

8

BBW International

55

11

-

66

La Senza International

331

2

(26)

307

Total Franchise Stores

588

51

(28)

611

 

 

L BRANDS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME 

THIRTEEN WEEKS ENDED AUGUST 2, 2014 AND AUGUST 3, 2013

(Unaudited)

(In thousands except per share amounts) 






2014


2013

Net Sales

$  2,675,311


$  2,515,953

Cost of Goods Sold, Buying and Occupancy

(1,630,951)


(1,527,328)

Gross Profit

1,044,360


988,625

General, Administrative and Store Operating Expenses

(668,418)


(630,819)

Operating Income

375,942


357,806

Interest Expense

(81,631)


(75,968)

Other Income

1,962


1,016





Income Before Income Taxes

296,273


282,854

Provision for Income Taxes

107,916


103,940





Net Income 

$     188,357


$     178,914





Net Income Per Diluted Share

$           0.63


$           0.61





Weighted Average Shares Outstanding

297,342


295,473

 

 

 

L BRANDS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME 

TWENTY-SIX WEEKS ENDED AUGUST 2, 2014 AND AUGUST 3, 2013

(Unaudited)

(In thousands except per share amounts) 






2014


2013

Net Sales

$  5,066,541


$  4,783,910

Cost of Goods Sold, Buying and Occupancy

(3,040,089)


(2,853,873)

Gross Profit

2,026,452


1,930,037

General, Administrative and Store Operating Expenses

(1,314,399)


(1,261,050)

Operating Income

712,053


668,987

Interest Expense

(165,954)


(155,341)

Other Income

5,615


4,005





Income Before Income Taxes

551,714


517,651

Provision for Income Taxes

206,375


196,234





Net Income 

$     345,339


$     321,417





Net Income Per Diluted Share

$           1.16


$           1.09





Weighted Average Shares Outstanding

297,333


295,329

 

 

 

L Brands, Inc. logo.

 

Logo - http://photos.prnewswire.com/prnh/20140130/CL56250LOGO

SOURCE L Brands, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Disruptive macro trends in technology are impacting and dramatically changing the "art of the possible" relative to supply chain management practices through the innovative use of IoT, cloud, machine learning and Big Data to enable connected ecosystems of engagement. Enterprise informatics can now move beyond point solutions that merely monitor the past and implement integrated enterprise fabrics that enable end-to-end supply chain visibility to improve customer service delivery and optimize sup...
Over the last few years the healthcare ecosystem has revolved around innovations in Electronic Health Record (HER) based systems. This evolution has helped us achieve much desired interoperability. Now the focus is shifting to other equally important aspects - scalability and performance. While applying cloud computing environments to the EHR systems, a special consideration needs to be given to the cloud enablement of Veterans Health Information Systems and Technology Architecture (VistA), i.e....
SYS-CON Events announced today that MetraTech, now part of Ericsson, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Ericsson is the driving force behind the Networked Society- a world leader in communications infrastructure, software and services. Some 40% of the world’s mobile traffic runs through networks Ericsson has supplied, serving more than 2.5 billion subscribers.
From telemedicine to smart cars, digital homes and industrial monitoring, the explosive growth of IoT has created exciting new business opportunities for real time calls and messaging. In his session at @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, shared some of the new revenue sources that IoT created for Restcomm – the open source telephony platform from Telestax. Ivelin Ivanov is a technology entrepreneur who founded Mobicents, an Open Source VoIP Platform, to help create, de...
The Internet of Things (IoT) promises to evolve the way the world does business; however, understanding how to apply it to your company can be a mystery. Most people struggle with understanding the potential business uses or tend to get caught up in the technology, resulting in solutions that fail to meet even minimum business goals. In his session at @ThingsExpo, Jesse Shiah, CEO / President / Co-Founder of AgilePoint Inc., showed what is needed to leverage the IoT to transform your business. ...
Grow your business with enterprise wearable apps using SAP Platforms and Google Glass. SAP and Google just launched the SAP and Google Glass Challenge, an opportunity for you to innovate and develop the best Enterprise Wearable App using SAP Platforms and Google Glass and gain valuable market exposure. In his session at @ThingsExpo, Brian McPhail, Senior Director of Business Development, ISVs & Digital Commerce at SAP, outlined the timeline of the SAP Google Glass Challenge and the opportunity...
As enterprises look to take advantage of the cloud, they need to understand the importance of safeguarding their confidential and sensitive data in cloud environments. Enterprises must protect their data from (i) system administrators who don't need to see the data in the clear and (ii) adversaries who become system administrators from stolen credentials. In short, enterprises must take control of their data: The best way to do this is by using advanced encryption, centralized key management and...
What are the benefits of using an enterprise-grade orchestration platform? In their session at 15th Cloud Expo, Nate Gordon, Director of Technology at Appcore, and Kedar Poduri, Senior Director of Product Management at Citrix Systems, took a closer look at the architectural design factors needed to support diverse workloads and how to run these workloads efficiently as a service provider. They also discussed how to deploy private cloud environments in 15 minutes or less.
In his session at DevOps Summit, Andrei Yurkevich, CTO at Altoros, provided an overview of all the benefits and opportunities, as well as drawbacks of deploying Cloud Foundry PaaS with Juju and compared it to BOSH. Discover the features that overlap, and understand what Juju Charm is, what it is not, where you use one or the other or where you use both BOSH and Juju Charms together. Andrei Yurkevich is Cloud Foundry protagonist and CTO at Altoros. Under his supervision, the Altoros engineering ...
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water,...
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrateg...
For better or worse, DevOps has gone mainstream. All doubt was removed when IBM and HP threw up their respective DevOps microsites. Where are we on the hype cycle? It's hard to say for sure but there's a feeling we're heading for the "Peak of Inflated Expectations." What does this mean for the enterprise? Should they avoid DevOps? Definitely not. Should they be cautious though? Absolutely. The truth is that DevOps and the enterprise are at best strange bedfellows. The movement has its roots in t...
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. It also ensured scalability and better service for customers, including MUY! Companies, one of the country's largest franchise restaurant companies with 232 Pizza Hut locations. This is one example of...
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impac...
One of the biggest challenges when developing connected devices is identifying user value and delivering it through successful user experiences. In his session at Internet of @ThingsExpo, Mike Kuniavsky, Principal Scientist, Innovation Services at PARC, described an IoT-specific approach to user experience design that combines approaches from interaction design, industrial design and service design to create experiences that go beyond simple connected gadgets to create lasting, multi-device exp...