Free Post Earnings Research Report: L Brands Tops Revenue Estimates; Earnings In-line with Market Expectations

Stock Monitor: Ascena Retail Post Earnings Reporting

LONDON, UK / ACCESSWIRE / December 28, 2017 / Active-Investors.com has just released a free earnings report on L Brands, Inc. (NYSE: LB). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=LB. The Company posted its third quarter fiscal 2017 operating results on December 01, 2017. The leading lingerie and personal care products manufacturer's Bath & Body Works comparable store sales rose approximately 1.00% in the reported quarter. Register today and get access to over 1000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for Ascena Retail Group, Inc. (NASDAQ: ASNA), which also belongs to the Services sector as the Company L Brands. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, L Brands most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=LB

Earnings Highlights and Summary

In Q3 FY17, L Brands posted revenues of $2.62 billion compared to $2.58 billion in Q3 FY16, advancing 1.43% on a y-o-y basis. The Company's revenue numbers beat analysts' estimates of $2.61 billion.

The Company posted a gross profit of $989.00 million in the reported quarter compared to $1.03 billion in Q3 FY16, declining 3.51% on a y-o-y basis. L Brands posted general, administrative, and store operating expenses of $757.00 million in the reported quarter compared to $741.00 million in Q3 FY16.

L Brands' operating income was $232.00 million in Q3 FY17 compared to $284.00 million in Q3 FY16, decreasing 18.31% on a y-o-y basis.

The Company had a net income of $86.00 million in Q3 FY17 compared to $122.00 million in Q3 FY16, showing a decline of 29.51% on a y-o-y basis. The diluted earnings per share (EPS) declined 28.57% to $0.30 in the reported quarter compared to $0.42 in Q3 FY16, meeting analysts' expectations.

Segment Details

L Brands has three reportable segments, namely: (i) Victoria's Secret, (ii) Bath & Body Works, and (iii) Victoria's Secret and Bath and Body Works International.

In Q3 FY17, Victoria's Secret had net sales of $1.54 billion compared to $1.58 billion in Q3 FY16, declining 2.84% on a y-o-y basis, due to low-single digits fall in lingerie bra sales. The segment's operating income was $134.00 million in Q3 FY17 compared to $164.00 million in Q3 FY16, decreasing 18.29% on a y-o-y basis.

Bath & Body Works segment had revenues of $816.00 million in Q3 FY17 compared to $770.00 million in Q3 FY16, reflecting a growth of 5.97% on a y-o-y basis, due to a strong performance by home assortment sub-segment. The segment's operating income was $138.00 million in Q3 FY17 compared to $145.00 million in Q3 FY16, declining 4.83% on a y-o-y basis.

Victoria's Secret and Bath & Body Works International segment had revenues of $115.00 million in Q3 FY17 compared to $104.00 million in Q3 FY16, rising 10.58% on a y-o-y basis.

Cash Matters

L Brands had cash and cash equivalents of $735.00 million on October 28, 2017, compared to $654.00 million on October 29, 2016. The Company's cash inflow from operating activities was $138.00 million on October 28, 2017, compared to $411.00 million on October 29, 2016. On October 28, 2017, L Brands' capital expenditure was $599.00 million compared to $825.00 million on October 29, 2017. In Q3 FY17, the Company's Board of Directors approved a new $250.00 million share repurchase program, inclusive of the $10.00 million remaining under the February 2017 repurchase program. In September 2017, L Brands repurchased 935,000 shares at an average price of $41.30 per share, for a total consideration of $38.62 million. On November 10, 2017, the Company declared a quarterly dividend of $0.60 per share, payable on December 08, 2017, to shareholders of record at the close of business on November 24, 2017.

Outlook

For Q4 FY17, L Brands anticipates EPS to be in the range of $1.95 - $2.10, while for the fiscal year 2017, the Company expects EPS to be in the band of $3.05 - $3.20.

Stock Performance Snapshot

December 27, 2017 - At Wednesday's closing bell, L Brands' stock fell 2.70%, ending the trading session at $61.25.

Volume traded for the day: 1.93 million shares.

Stock performance in the last month - up 21.67%; previous three-month period - up 43.24%; and past six-month period - up 12.88%

After yesterday's close, L Brands' market cap was at $17.07 billion.

Price to Earnings (P/E) ratio was at 18.67.

The stock has a dividend yield of 3.92%.

The stock is part of the Services sector, categorized under the Apparel Stores industry. This sector was flat at the end of the session.

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