L Brands confirms first sales uptick since swimwear exit

L Brands

Retail group L Brands has secured its first substantial earnings boost since its Victoria’s Secret brand made the decision to withdraw its swimwear range.

L Brands reported net sales of $794.1m (£603m) for the four weeks ending October 28, 2017, an increase of 5% compared to net sales of $756.7m (£574m) in the same month last year.

Comparable sales increased 2% in the same period, above market expectations of a 2% fall.

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This was helped by strong demand for Bath & Body Works’ products along with increasing demand trends for Victoria’s Secret lines.

Comparable sales at Victoria’s Secret increased 1% in October.

These results indicate that L Brands is stabilising and inflecting upward sooner than most expected, after months of declining sales.

The company reported net sales of $7.8bn (£5.9bn) for the 39 weeks to October 28, 2017, a decrease of 3% compared to 2016.

The exit of the swim and apparel categories had a negative impact of about five percentage points and seven percentage points to total company and Victoria’s Secret comparable sales, respectively.

 

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