Shares of L Brands, Inc. LB rose 2.6% during after-market trading hours yesterday after this specialty retailer of women’s intimate and other apparel, beauty and personal care products, raised its third-quarter fiscal 2015 earnings projection and provided estimated October comparable-store sales data.
This Zacks Rank #2 (Buy) company now envisions third-quarter earnings per share in the band of 51–53 cents, up from 40–45 cents projected earlier. In the prior-year quarter, the company delivered earnings of 44 cents a share. The current Zacks Consensus Estimate for the quarter is pegged at 48 cents a share, which could witness an uptrend in the coming days, following the company’s upbeat outlook.
L Brands now expects October comparable-store sales to increase 5%. Management now anticipates comps growth of 5% at both Victoria’s Secret Stores and Bath & Body Works. Total sales at Victoria’s Secret Direct are expected to jump approximately 7%.
L Brands 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, setting it apart from its peers. Further, L Brands’ foray into international markets is likely to bring long-term growth opportunities as these stores continue to perform well in addition to generating increased sales volumes.
Stocks that Warrant a Look
Other well-ranked retail stocks that look promising include Foot Locker, Inc. FL, Columbia Sportswear Co. COLM and NIKE, Inc. NKE, all sporting a Zacks Rank #1 (Strong Buy).
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