Insight Report 3 minutes PremiumL Brands (LB) 1Q16 Results: Managements Lowers Full-Year Outlook to Reflect Challenges at Victoria’s Secret Coresight Research May 18, 2016 Executive Summary L Brands reported 1Q16 adjusted EPS of $0.59 versus guidance that it provided earlier in the month for the high end of $0.50–$0.55. Management was not satisfied with the quarter’s results, particularly at Victoria’s Secret. PINK saw a double-digit increase in sales, and Bath & Body Works posted strong results. Victoria’s Secret’s core lingerie sales were up only slightly (and decelerated sequentially) and beauty category sales were weaker. Trends decelerated as the quarter progressed. Management lowered its full-year EPS guidance to $3.60–$3.80 from $3.90–$4.10 previously. Full-year comps are expected to be roughly flat. The more modest outlook is based on two factors: (1) Victoria’s Secret is expected to see an impact of $0.20, which takes into account both an estimate related to previously announced strategic changes and a deceleration in sales trends, and (2) a plan to develop a company-owned China business is expected to result in an impact of $0.10 related to incremental expenses. Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for Other research you may be interested in: Market Outlook: US Department Stores—Innovation Amid New ChallengesWeinswig’s Weekly: Pioneer the Future of Retail at NextGen Commerce, a Coresight Research AI ConferenceWeekly US and UK Store Openings and Closures Tracker 2023, Week 46: Avon Calling!Market Navigator: UK Retail, Including E-Commerce—Consumer Constraints To Fuel Multi-Year Discounter Growth