L Brands falls after cutting annual dividend in half

  • L Brands slipped in postmarket trading after the company said it would cut its annual dividend in half.
  • The owner of Victoria's Secret and Bath & Body Works posted better-than-expected earnings.
  • The company also raised its full-year profit outlook.
Victoria Secret L Brand Location
Craig Warga | Bloomberg | Getty Images

L Brands shares fell 4 percent postmarket Monday after the company said it would slash its annual dividend in half to $1.20.

The company, known for its brands Victoria's Secret and Bath & Body Works, beat profit expectations. L Brands reported adjusted earnings of 16 cents a share versus a Refinitiv estimate of 15 cents. It also reported $2.77 billion for the third quarter, in line with the preliminary sales figures it released on Nov. 8.

It also raised its full-year earnings outlook, saying it now expects earnings between $2.60 a share to $2.80 a share. The company had previously forecast full-year earnings between $2.45 a share and $2.70 a share.

L Brands said stores open more than a year saw sales rise 4 percent year over year, also in line with the preliminary results it released earlier this month.

WATCH:Here's how Target is making a comeback