L Brands, Inc. (LB) posted its comparable-store sales (comps) results for the five weeks ended Jan 3, 2015 that fared better than analysts' expectations. As announced on Jan 8, comps of this specialty retailer of women’s intimate and other apparel, beauty and personal care products, climbed 4%.
Net sales for Dec 2014 increased 5% to $2,207 million from $2,098 million in the prior-year period. We believe that the company’s operational efficiencies, together with its new and innovative collections, augmented sales.
Retailers benefited during the month under review from increasing consumer confidence and improving job prospects. Retailers such as Zumiez, Inc. (ZUMZ) and Rite Aid Corp. (RAD) saw their comps rising 8% and 5.3%, respectively, during the month.
L Brands, which competes with Hanesbrands Inc. (HBI), saw its comps for December increasing 3% at its Victoria’s Secret Stores & Victoria’s Secret Beauty, and 5% at Bath & Body Works & The White Barn Candle Co. However, sales declined 1% at Victoria’s Secret Direct.
For the 48-week period, net sales increased 6% to $10,671 million from $10,042 million in the year-ago period, while comps grew 4%.
L Brands currently carries a Zacks Rank #2 (Buy) and operates about 2,975 stores. It commands a market-leading position in the lingerie, personal care and beauty segments. We believe that the company’s innovation in merchandise and exclusive assortments remains popular among consumers and sets it apart from its peers. The company, with its operational efficiencies as well as new and innovative assortments, remains well positioned to capitalize on the same.
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