Shares of L Brands fell 4 percent after it said that it is halving its annual dividend and has appointed a new chief executive to run its troubled lingerie brand Victoria’s Secret.
The company, which also owns luxury bodycare brand Bath & Body Works, beat profit expectations. L Brands reported adjusted earnings of 16 cents a share versus a Refinitiv estimate of 15 cents.
It also raised its full-year earnings outlook, saying it now expects earnings between US $ 2.60 a share to US $ 2.80 a share. The company had previously forecast full-year earnings between US $ 2.45 a share and US $ 2.70 a share.
Sales at Victoria’s Secret, L Brands’ biggest division by revenue, have fallen in seven out of the last eight quarters, mainly due to weakness in Pink, the brand launched in 2002 aimed at college-going clientele.
“In Pink, fashion errors in loungewear have driven a recent deceleration in performance,” the company said.
The company has said it would pursue options for its money-losing La Senza brand and shut down Henri Bendel retail stores and website, as it focuses on its core brands.
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