L Brands Results Top Estimates; Outlook Weak

(RTTNews) - Women's apparel retailer L Brands, Inc. (LB) said Wednesday after the markets closed that its fourth quarter profit rose 15% from last year, as sales increased 7%.

The company's quarterly earnings per share also came in above analysts' expectations. However, the company forecasts current quarter and fiscal year earnings below analysts' current consensus estimate.

L Brands shares are losing 2.24% in after hours trading after closing the day's regular trading session at $92.47, up 94 cents or 1.03%. The shares trade in a 52-week range of $53.03 to $94.84.

L Brands, through Victoria's Secret, PINK, Bath & Body Works, La Senza and Henri Bendel, operates 2,969 company-owned specialty stores in the United States, Canada and the United Kingdom. The company was formerly known as Limited Brands, Inc. and changed its name to L Brands, Inc. in March 2013.

For the fourth quarter ended January 31, 2015, the Columbus, Ohio-based company reported net income of $564.8 million or $1.89 per share, compared to $489.6 million or $1.65 per share for the year-ago quarter.

On average, 29 analysts polled by Thomson Reuters expected the company to earn $1.80 per share for the fourth quarter.

Earlier this month, L Brands had raised its fourth quarter earnings outlook to a range of $1.78 to $1.80 per share from its earlier outlook of $1.61 to $1.71 per share.

As previously announced, net sales for the fourth quarter rose 7% to $4.07 billion from $3.82 billion in the same quarter last year. Twenty-seven analysts had a consensus revenue estimate of $4.03 billion for the fourth quarter.

Same-store sales for the quarter increased 6%, including 4% at Victoria's Secret and 8% Bath & Body Works stores.

Looking forward, the company forecast earnings of $0.50 to $0.55 per share for the first quarter and $3.45 to $3.65 per share for the full year 2015. Analysts currently expect the company to earn $0.62 per share for the first quarter and $3.83 per share for the full year 2015.

The company also said it expects to report February same-store sales to increase in the mid-single digit range.