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. This report is for paying subscribers only. Already a paying subscriber? Please log in to see the entire report.If you wish to learn more about our subscription plans and become a paying subscriber, click here. This document was generated for Other research you may be interested in: April 2023 China Retail Sales: Total Sales Accelerate Further as Most Sectors Continue To See Strong GrowthThe State of In-Store Retailing: Opportunities To Redefine OperationsWeinswig’s Weekly: Announcing a New Research Product for Coresight Research SubscribersUS CPG Sales Tracker: Nonfood CPG Rebounds, with E-Commerce and In-Store Growth Accelerating