L Brands is out with its third quarter earnings report!
While the net sales for the American fashion retailer increased by an impressive 14.1 per cent to clock US $ 3.06 billion during the quarter, what has pleased the retailer is the comeback of Victoria’s Secret.
Though Bath & Body Works has been the biggest gainer for the retailer in Q3, the struggling Victoria’s Secret saw its total comparable sales rise by 4 per cent.
As per UBS analysts, Victoria’s Secret was able to increase its prices by 22 per cent, with its operating income jumping by a huge 264 per cent year-over-year (Y-o-Y) to record US $ 115 million.
Industry experts and analysts believe this may not be a flash in the pan! The new management at Victoria’s Secret, which is committed to reduce markdowns and streamline expenses, might just be instrumental in giving a new life to the lingerie brand.
Meanwhile, L Brands posted a net income of US $ 330.6 million from a net loss of US $ 252 million a year back.
The operating income too clocked US $ 580.6 million from last year’s operating loss of US $ 151.2 million. Gross margin too expanded 870 basis points to 44.5 per cent of sales.
The third quarter’s margin improvement is already being considered the strongest for the retailer in many years.
It will be interesting to see the lingerie brand’s performance going into the next quarter.