Victoria’s Secret parent L Brands offers upbeat EPS guidance after holiday sales beat its expectations

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Shares of Victoria’s Secret parent L Brands Inc. rose 3.2% in premarket trade Thursday before surrendering those gains, after the company said holiday sales exceeded its expectations and offered consensus-beating guidance for fourth-quarter per-share earnings. The company said it chalked up sales of $3.836 billion over the nine-week holiday period through Jan. 2, while same-store sales rose 5%. At Victoria’s Secret, same-store sales fell 9%, while at Bath & Body Works, same-store sales were up 17%. The company is now expecting fourth-quarter EPS to range from $2.70 to $2.80, well ahead of the FactSet consensus for $1.97. “We are very pleased with our Holiday results, which significantly exceeded our initial expectations, driven by an increase in profitability at both Bath & Body Works and Victoria’s Secret,” Chief Executive Andrew Meslow said in a statement. The company is scheduled to report fourth-quarter earnings on Feb . 24. Shares have gained 142% in the last 12 months, while the S&P 500 has gained 15%.
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