Victoria Secret’s parent stock falls on weak holiday sales and trimmed forecast

Earnings

Pedestrians walk past a Victoria’s Secret store, a subsidiary of L Brands, in New York.

Craig Warga | Bloomberg | Getty Images

L Brands on Thursday reported shrinking holiday sales, leading the retailer to cut its earnings outlook for fiscal 2019.

Shares of the company fell more than 4% in premarket trading.

Victoria’s Secret’s parent company now expects to report fourth-quarter earnings of $1.85 per share, down from its previous forecast of $2.00 per share.

During the nine weeks that ended Jan. 4, L Brands saw net sales of $3.9 billion, down from $4.1 billion a year ago. Same-store sales declined by 3% during that time period.

Victoria’s Secret’s same-store sales across its stores and direct channels shrank by 12% during the holiday season, a much steeper drop than the previous year’s decline of 4%.

Bath & Body Works reported same-store sales growth of 9% in the same time period.

Read the full press release here.

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