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L Brands shares plummet after third-quarter forecast cut

Gigi Hadid walks the runway during the 2015 Victoria's Secret Fashion Show.
Adam Jeffery | CNBC
Gigi Hadid walks the runway during the 2015 Victoria's Secret Fashion Show.

Shares of L Brands shed more than 7 percent on Tuesday after the company cut its third-quarter forecast, citing a slowdown at its Victoria's Secret stores.

Late Monday, the retailer said it expects to earn 40 cents per share in the third quarter, which was at the low end of its prior estimate of between 40 cents and 45 cents per share, and sharply lower than 2015's third-quarter earnings of 55 cents per share. A consensus estimate from Thomson Reuters projected earnings of 46 cents per share for the period.

L Brands now expects October same-store sales to rise 1 percent, aided by a 6 percent same-store sales increase at its Bath and Body Works stores, which helped offset an expected 2 percent drop at Victoria's Secret.

With Tuesday's declines, shares of the retail company are already down more than 30 percent so far this year.

L Brands is scheduled to release its third-quarter report on Wednesday, Nov. 16.

Earlier this year, Victoria's Secret made a decision to exit several categories such as its swimwear business and change its promotional strategy. Analysts had expected the moves to create some short-term shakiness as these strategic moves were implemented.

L Brands 5-Day Performance