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L Brands Reports October 2015 Sales and Reiterates Previously Raised Third Quarter Earnings Guidance

COLUMBUS, Ohio, Nov. 05, 2015 (GLOBE NEWSWIRE) -- L Brands, Inc. (NYSE:LB) reported net sales of $735.6 million for the four weeks ended Oct. 31, 2015, an increase of 5 percent, compared to net sales of $700.0 million for the four weeks ended Nov. 1, 2014. Comparable store sales increased 5 percent for the four weeks ended Oct. 31, 2015.

The company reported net sales of $2.482 billion for the 13 weeks ended Oct. 31, 2015, an increase of 7 percent compared to net sales of $2.319 billion for the 13 weeks ended Nov. 1, 2014. Comparable store sales increased 7 percent for the 13 weeks ended Oct. 31, 2015.

The company reported net sales of $7.759 billion for the 39 weeks ended Oct. 31, 2015, an increase of 5 percent compared to net sales of $7.385 billion for the 39 weeks ended Nov. 1, 2014. Comparable store sales increased 5 percent for the 39 weeks ended Oct. 31, 2015.

As previously announced, the company now expects third quarter earnings per share between $0.51 and $0.53, versus its previous guidance of $0.40 to $0.45 and last year’s result of $0.44. The company will provide fourth quarter earnings guidance when it reports third quarter earnings after the close of the market on Nov. 18. The company will conduct its third quarter earnings call at 9 a.m. Eastern on Nov. 19.

To hear further commentary provided on L Brands’ prerecorded October sales message, call 1-866-639-7583, or log onto www.LB.com for an audio replay.

ABOUT L BRANDS:
L Brands, through Victoria’s Secret, PINK, Bath & Body Works, La Senza and Henri Bendel, is an international company. The company operates 3,003 company-owned specialty stores in the United States, Canada and the United Kingdom, and its brands are sold in more than 700 additional noncompany-owned locations worldwide. The company’s products are also available online at www.VictoriasSecret.com, www.BathandBodyWorks.com, www.HenriBendel.com and www.LaSenza.com.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

L Brands, Inc. cautions that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this press release or the October sales call involve risks and uncertainties and are subject to change based on various factors, many of which are beyond our control. Accordingly, our future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Words such as “estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “planned,” “potential” and any similar expressions may identify forward-looking statements. Risks associated with the following factors, among others, in some cases have affected and in the future could affect our financial performance and actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements included in this press release or the October sales call:

  • general economic conditions, consumer confidence, consumer spending patterns and market disruptions including severe weather conditions, natural disasters, health hazards, terrorist activities, financial crises, political crises or other major events, or the prospect of these events;
  • the seasonality of our business;
  • the dependence on a high volume of mall traffic and the availability of suitable store locations on appropriate terms;
  • our ability to grow through new store openings and existing store remodels and expansions;
  • our ability to successfully expand into global markets and related risks;
  • our relationships with independent franchise, license and wholesale partners;
  • our direct channel businesses;
  • our failure to protect our reputation and our brand images;
  • our failure to protect our trade names, trademarks and patents;
  • the highly competitive nature of the retail industry generally and the segments in which we operate particularly;
  • consumer acceptance of our products and our ability to keep up with fashion trends, develop new merchandise and launch new product lines successfully;
  • our ability to source, distribute and sell goods and materials on a global basis, including risks related to:
    • political instability;
    • duties, taxes and other charges;
    • legal and regulatory matters;
    • volatility in currency exchange rates;
    • local business practices and political issues;
    • potential delays or disruptions in shipping and transportation and related pricing impacts;
    • disruption due to labor disputes; and
    • changing expectations regarding product safety due to new legislation;
  • fluctuations in foreign currency exchange rates;
  • stock price volatility;
  • our failure to maintain our credit rating;
  • our ability to service or refinance our debt;
  • our ability to retain key personnel;
  • our ability to attract, develop and retain qualified employees and manage labor-related costs;
  • the inability of our manufacturers to deliver products in a timely manner and meet quality standards;
  • fluctuations in product input costs;
  • fluctuations in energy costs;
  • increases in the costs of mailing, paper and printing;
  • claims arising from our self-insurance;
  • our ability to implement and maintain information technology systems and to protect associated data;
  • our failure to maintain the security of customer, associate, supplier or company information;
  • our failure to comply with regulatory requirements;
  • tax matters; and
  • legal and compliance matters.

We are not under any obligation and do not intend to make publicly available any update or other revisions to any of the forward-looking statements contained in this press release or the October sales call to reflect circumstances existing after the date of this press release or the October sales call or to reflect the occurrence of future events even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized. Additional information regarding these and other factors can be found in “Item 1A. Risk Factors’ in our 2014 Annual Report on Form 10-K.

L BRANDS
OCTOBER 2015
Comparable Store Sales Increase (Decrease):

Oct.
2015

Oct.
2014
Third
Quarter
2015
Third
Quarter
2014
Year-to-
Date
2015
Year-to-
Date
2014
Victoria’s Secret1 5% 0% 7% 3% 5% 3%
Bath & Body Works1 5% 5% 6% 7% 5% 4%
L Brands 5% 3% 7% 5% 5% 3%
Victoria’s Secret Direct Sales 7% (7%) 4% 2% (2%) 0%

1 – Results include company-owned stores in the United States and Canada.


Total Sales (Millions):

Third
Quarter
2015

Third
Quarter
2014
Year-
to-
Date
2015
Year-
to-
Date
2014
Victoria’s Secret Stores1$1,282.1 $1,177.6 $4,065.3 $3,785.9
Victoria’s Secret Direct 285.4 274.7 992.5 1,015.4
Total Victoria’s Secret$1,567.5 $1,452.3 $5,057.8 $4,801.3
Bath & Body Works1$637.2 $602.7 $1,863.2 $1,771.1
Bath & Body Works Direct 68.3 56.7 203.8 174.5
Total Bath & Body Works$705.5 $659.4 $2,067.0 $1,945.6
VS & BBW International2$92.8 $80.0 $273.0 $230.4
Other3$115.8 $127.2 $361.0 $408.1
L Brands$ 2,481.6 $ 2,318.9 $ 7,758.8 $ 7,385.4

1 – Results include company-owned stores in the United States and Canada.
2 – Results include retail sales from company-owned stores outside of the United States and Canada and royalty and wholesale sales associated with partner-operated stores.
3 – Results include La Senza, Henri Bendel and Mast external sales.


Total Company-Owned Stores:
Stores Stores
OperatingOperating
at 1/31/15OpenedClosedat 10/31/15
Victoria's Secret U.S. 9839 (3)989
PINK U.S. 11515 (3)127
Victoria's Secret Canada 314 - 35
PINK Canada 10- - 10
Total Victoria’s Secret 1,13928 (6)1,161
Bath & Body Works U.S. 1,55819 (4)1,573
Bath & Body Works Canada 8810 - 98
Total Bath & Body Works 1,64629 (4)1,671
Victoria’s Secret U.K. 8- - 8
PINK U.K. 2- - 2
Henri Bendel 29- - 29
La Senza Canada 1451 (14)132
Total L Brands Stores 2,96958 (24)3,003


Total Noncompany-Owned Stores:
Stores

Stores
OperatingOperating
at 1/31/15OpenedClosedat 10/31/15
Victoria’s Secret Beauty & Accessories 29057 (5)342
Victoria’s Secret 132 - 15
PINK 12 - 3
Bath & Body Works 8032 (2)110
La Senza 2663 (37)232
Total 65096 (44)702


For further information, please contact: L Brands: Investor Relations Amie Preston (614) 415-6704 apreston@lb.com Media Relations Tammy Roberts Myers (614) 415-7072 communications@lb.com

Source:L Brands Inc