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L Brands swings to profit in Q3, comparable sales rise 28 percent

By Prachi Singh

19 Nov 2020

L Brands, Inc. reported earnings per share of 1.17 dollars for the third quarter ended October 31, 2020 compared to a loss per share of 91 cents for the quarter ended November 2, 2019. Third quarter operating income was 580.6 million dollars compared to an operating loss of 151.2 million dollars last year, and net income was 330.6 million dollars compared to a net loss of 252 million dollars last year.

Commenting on the third quarter trading, Andrew Meslow, Chief Executive Officer of L Brands, 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. As we head into the holidays, our inventories are well-positioned, and we are encouraged by customers’ early response to our merchandise assortments. However, we are cautious about our ability to exceed last year’s fourth quarter sales and earnings results, given anticipated constraints on store traffic, online fulfilment and shipping capacity, as well as other uncertainties related to the Covid pandemic.”

The company said in a statement that adjusted earnings per share were 1.13 dollars compared to 2 cents last year, adjusted operating income was 550.7 million dollars compared to 96.3 million dollars last year and adjusted net income was 320.3 million dollars compared to 5.7 million dollars last year.

The company reported net sales of 3.055 billion dollars for the quarter compared to 2.677 billion dollars for the quarter ended November 2, 2019, while comparable sales increased 28 percent.

Picture:L Brands resources