Dimitrios Kambouris/Getty Images
- L Brands is set to report fourth-quarter earnings after Wednesday’s closing bell.
- Analysts are expecting adjusted earnings of $2.08 a share on $4.92 billion revenue.
- Watch L Brands trade live.
L Brands, the owner of Victoria’s Secret, is set to report fourth-quarter earnings after Wednesday’s closing bell.
Here is what analysts surveyed by Bloomberg are expecting:
- Adjusted earnings per share: $2.08
- Revenue: $4.92 billion
Earlier this month, L Brands reported that total comparable sales (including stores and direct) at its flagship brand, Victoria’s Secret, declined 1% in January, driven by an 8% drop in store-only comps. That was below the Wall Street consensus of a 1% increase, according to UBS.
The company also announced that its quarterly dividend will be $0.30 a share in the first quarter, less than half of the $0.61 paid last quarter.
"The brands are not wanted anymore," Jefferies analyst Randal Konik, a long-term bear on Victoria’s Secret and L Brands, said in February.
"Keep in mind that comps remain negative despite very high promos, which means true brand demand is even worse than reported as some consumers buy things when they are given away for free or marked down by more than 50-75%."
Konik has an "underperform" rating and $21 price target for L Brands — 24% below where shares were trading Wednesday.
L Brands was up 5% this year.
Now read:
- Victoria’s Secret is basically giving things away for free — but it’s not working (LB)
- A ‘scary’ development is taking place at Victoria’s Secret
- RBC: Victoria’s Secret is trading at ‘negative value’
- Victoria’s Secret is broken and its Pink franchise is in the ‘early innings’ of a long decline
- The Victoria’s Secret fashion show illustrates ‘how out of touch the brand still is’
Markets Insider
NOW WATCH: There’s a secret room behind Mount Rushmore that’s inaccessible to tourists
See Also:
- Michael Jackson’s Neverland Ranch is on the market for nearly 70% off the original price — here’s a look inside the 2,700-acre property with its sprawling mansion and Disney-themed train station
- No-deal Brexit panic after ministers realize the UK doesn’t have the right pallets for exporting to the EU
- The House votes to terminate Trump’s national-emergency declaration
Source: Business Insider – ejiang@businessinsider.com (Ethel Jiang)