L Brands, the parent company of Victoria’s Secret, posted first-quarter earnings and revenue that beat analysts’ expectations, thanks to solid growth across the board and more customers paying full price for the company’s goods. In recently extended trade, its stock was down more than 1%.
The company’s net income increased to $276.6 million, or 97 cents per share, from a loss of $296.9 million, or $1.07 per share, the previous year. L Brands received $1.25 per share after one-time charges, exceeding analysts’ expectations of $1.21. Total revenue increased by more than 80% to $3.02 billion from $1.65 billion the previous year. This was higher than the $3.01 billion forecast.
Total same-store sales increased by 21% year over year, compared to a 4% rise in the previous year. Victoria’s Secret saw a 25% increase in same-store revenue, compared to a 15% decline a year ago. Bath & Body Works saw a 16 percent increase in same-store revenue, compared to a 41 percent increase a year ago, when many customers were stocking up on hand sanitizers at the start of the Covid pandemic.
The company had previously stated its first-quarter goals and raised them several times, citing continued, increased momentum for its Victoria’s Secret lingerie brand. According to management in prepared remarks published Wednesday, customers have been “responding positively” to new merchandise at Victoria’s Secret. This is including ads from the company’s first-ever Mother’s Day advertisement with a pregnant model.