Shares of L Brands, Inc. (LB) dropped 4.2% following comparable-store sales results for June, the five weeks ended Jul 5, 2014, that fell short of analysts' expectations. Comps of this specialty retailer of women’s intimate and other apparel moved up 2%. The rate of growth decelerated from 3% attained in May.
Net sales for June climbed 7% to $1,176 million from $1,101 million in the prior-year period.
Most of the retailers benefited during the month under review, as favorable weather conditions, aggressive promotional strategies and improving job prospects were enough to lure consumers. Retailers struggled with dampened sales in the first three months of the year as a harsh weather locked consumers indoors. Retailers such as Rite Aid Corp. (RAD), Zumiez Inc. (ZUMZ) and Walgreen Co. (WAG) saw their comparable-store sales increasing 3.9%, 3.1% and 7.5%, respectively, during June.
Coming to L Brands, comparable-store sales for June rose 3% at Victoria’s Secret Stores & Victoria’s Secret Beauty and 1% at Bath & Body Works & The White Barn Candle Co. Sales rose 6% at Victoria’s Secret Direct.
For the 22-week period ended Jul 5, 2014, net sales increased 6% to $4,331 million from $4,106 million in the year-ago period, while comparable-store sales climbed 2%.
L Brands, which currently carries a Zacks Rank #3 (Hold) and operates about 2,936 stores, now projects low single-digit comps increase for the month of July.
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