The US-based company L Brands (NYSE:LB), who owns notable brand names such as Victoria’s Secret and Bath and Body Works, reported disappointing results for its first-quarter financial earnings.
Net income of the company reached $47.5 million USD, which is almost half the $94.1 million value that L Brands saw in the first quarter of 2017. Earning per share also declined from $0.33 during the previous years quarter to $0.17.
The company has also decided to reduce its earnings predictions for the second quarter and the full-year of fiscal 2018.
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Earnings per share for the second quarter are now expected to reach anywhere between $0.30 and $0.35 and should reach $2.70 to $3.00 for the full year, compared to the previous $2.95 to $3.25 value.
During the first quarter, L Brands owned and ran a total of 3,075 stores. However, during this period, six Victoria’s Secret stores (which include the US and Canadian stores and the PINK brand), 11 Bath and Body Works stores, and three Henri Bendel stores were closed. At the same time, the company opened one Victoria’s Secret store and 13 Bath and Body Works stores, bringing their current store count to 3,069.
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According to a recent article from Bloomberg, the company “has been struggling to improve sales at its Victoria’s Secret chain” and that reducing forecasted earnings has “stoked investors fears that the trends won’t reverse anytime soon.”
Shares of L Brands seem to be making a turnaround since the reports were announced on Wednesday. The share value for the company has risen by nearly 4%, as of noon EDT.
After opening at a share value of $32.92 on Thursday, L Brands has already reached a high of $35.99 and a low of $31.71.
Comparatively, the company closed at a shared value of $34.05 on Wednesday, after reaching a high of $34.30 and a low of $33.67.
Featured Image: twitter
