Why L Brands Stock Fell 4.6% In Spite Of Positive Comps
Zacks Investment Research | Apr 12, 2018 10:57PM ET
Shares of L Brands, Inc. (NYSE:LB) witnessed a decline of around 4.6% in spite of delivering improved comparable sales (comps) for March 2018. Though comps grew for the fourth consecutive month, it wasn’t enough to placate investors who were let down by the decline in PINK comps. In fact, sources revealed that PINK witnessed its first comps decline in the company’s record. Well, management blamed the drop in PINK comps on softness in its swim business, which it plans to discontinue.
Coming to numbers, comps for the five-week period (ended Apr 7, 2018) rose 4%, after improving 3% and 7% in February and January, respectively. Net sales, in the month under review, rose 7% to $1.02 billion. While, comps inched up 1% at Victoria’s Secret, the same at Bath & Body Works improved 10%. Moreover, Victoria’s Secret merchandise margin rate fell significantly in March, primarily due to rise in promotional activities to boost traffic. However, in case of Bath & Body Works, merchandise margin rate was flat compared with last year.
Notably, March comps received nearly 2 points boost from early Easter, which is expected to dent comps in April.
Price Performance
Ever since the company announced fourth-quarter results on Feb 28, shares of this specialty retailer of women’s intimate and other apparel, beauty as well as personal care products have declined 26.7%. Moreover, in a month, the stock has declined 12.4% as against the Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.