In the news release, L Brands Reports Second Quarter 2015
Earnings, issued 19-Aug-2015 by L
Brands, Inc. over PR Newswire, we are advised by the company that
the fifth paragraph, "Earnings Call Information," now contains the
correct phone numbers and includes conference ID numbers. The
complete, corrected release follows:
L Brands Reports Second Quarter 2015 Earnings - PROVIDES THIRD
QUARTER AND RAISES FULL-YEAR 2015 EARNINGS GUIDANCE -
COLUMBUS, Ohio, Aug. 19, 2015 /PRNewswire/ -- L Brands, Inc.
(NYSE: LB) today reported 2015 second quarter results.
Second Quarter Results
Earnings per share for the
second quarter ended Aug. 1, 2015,
increased 8 percent to $0.68 compared
to $0.63 for the quarter ended
Aug. 2, 2014. Second quarter
earnings per share include a $0.02
negative foreign exchange impact. Second quarter operating
income increased 7 percent to $402.9
million compared to $375.9
million last year, and net income was $202.5 million compared to $188.4 million last year.
The company reported net sales of $2.765
billion for the second quarter ended Aug. 1, 2015, an increase of 3 percent compared
to sales of $2.675 billion for the
quarter ended Aug. 2, 2014. The
company reported a comparable store sales increase of 4 percent for
the second quarter ended Aug. 1,
2015.
2015 Outlook
The company stated that it expects 2015
third quarter earnings per share to be $0.40
to $0.45, and raised its full-year earnings forecast to
$3.58 to $3.73 per share from
$3.50 to $3.70 previously, which
includes a negative foreign exchange impact of approximately
$0.12 per share, about $0.03 of which is in the third quarter.
Earnings Call Information
L Brands will conduct its
second quarter earnings call at 9
a.m. Eastern on Aug. 20. To
listen, call 1-866-363-4673 (international dial-in number:
1-973-200-3978). For an audio replay, call 1-855-859-2056
(conference ID 33156271) (international replay number:
1-404-537-3406 (conference ID 33156271)) or log onto
www.LB.com. Additional second quarter financial information
is also available at www.LB.com.
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 2,976 company-owned specialty stores in
the United States, Canada and the United Kingdom, and its brands are sold in
more than 650 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 second quarter earnings 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
second quarter earnings 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
second quarter earnings call to reflect circumstances existing
after the date of this press release or the second quarter earnings
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
SECOND QUARTER 2015
|
|
|
|
Comparable Store
Sales Increase (Decrease):
|
|
|
Second
Quarter
2015
|
|
Second
Quarter
2014
|
|
Year-to-
Date
2015
|
|
Year-to-
Date
2014
|
|
|
|
|
|
|
|
|
|
|
Victoria's
Secret1
|
3%
|
|
3%
|
|
4%
|
|
3%
|
|
Bath & Body
Works1
|
5%
|
|
3%
|
|
5%
|
|
3%
|
|
L
Brands
|
4%
|
|
3%
|
|
4%
|
|
3%
|
|
Victoria's
Secret
Direct
Sales
|
(4%)
|
|
0%
|
|
(5%)
|
|
0%
|
|
|
|
|
|
|
|
|
|
|
1 –
Results include company-owned stores in the United States and
Canada.
|
|
Total Sales
(Millions):
|
|
Second
Quarter
2015
|
|
Second
Quarter
2014
|
|
Year-
to-
Date
2015
|
|
Year-
to-
Date
2014
|
|
|
|
|
|
|
|
|
Victoria's Secret
Stores1
|
$ 1,437.5
|
|
$ 1,363.0
|
|
$ 2,783.1
|
|
$ 2,608.4
|
Victoria's Secret
Direct
|
368.9
|
|
382.4
|
|
707.2
|
|
740.6
|
Total
Victoria's Secret
|
$ 1,806.4
|
|
$ 1,745.4
|
|
$ 3,490.3
|
|
$ 3,349.0
|
Bath & Body
Works1
|
$ 672.0
|
|
$ 638.3
|
|
$ 1,226.0
|
|
$ 1,168.5
|
Bath & Body
Works Direct
|
76.2
|
|
66.4
|
|
135.5
|
|
117.8
|
Total Bath
& Body Works
|
$ 748.2
|
|
$ 704.7
|
|
$ 1,361.5
|
|
$ 1,286.3
|
VS & BBW
International2
|
$ 88.7
|
|
$ 79.3
|
|
$ 180.2
|
|
$ 150.3
|
Other3
|
$ 121.9
|
|
$ 145.9
|
|
$ 245.2
|
|
$ 280.9
|
L
Brands
|
$ 2,765.2
|
|
$ 2,675.3
|
|
$ 5,277.2
|
|
$ 5,066.5
|
|
|
|
|
|
|
|
|
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
|
|
|
Operating
|
Operating
|
|
|
at 1/31/15
|
Opened
|
Closed
|
at 8/1/15
|
|
|
|
|
|
|
Victoria's Secret
U.S.
|
|
983
|
2
|
(2)
|
983
|
PINK U.S.
|
|
115
|
9
|
(2)
|
122
|
Victoria's Secret
Canada
|
|
31
|
2
|
-
|
33
|
PINK
Canada
|
|
10
|
-
|
-
|
10
|
Total
Victoria's Secret
|
|
1,139
|
13
|
(4)
|
1,148
|
|
|
|
|
|
|
Bath & Body Works
U.S.
|
|
1,558
|
10
|
(3)
|
1,565
|
Bath & Body Works
Canada
|
|
88
|
3
|
-
|
91
|
Total
Bath & Body Works
|
|
1,646
|
13
|
(3)
|
1,656
|
|
|
|
|
|
|
Victoria's Secret
U.K.
|
|
8
|
-
|
-
|
8
|
PINK U.K.
|
|
2
|
-
|
-
|
2
|
Henri
Bendel
|
|
29
|
-
|
-
|
29
|
La Senza
Canada
|
|
145
|
-
|
(12)
|
133
|
Total L Brands
Stores
|
|
2,969
|
26
|
(19)
|
2,976
|
Total
Noncompany-Owned Stores:
|
|
|
Stores
|
|
Stores
|
|
|
Operating
|
Operating
|
|
|
at 1/31/15
|
Opened
|
Closed
|
at 8/1/15
|
|
|
|
|
|
|
Victoria's Secret
Beauty & Accessories
|
|
290
|
38
|
(3)
|
325
|
Victoria's
Secret
|
|
13
|
1
|
-
|
14
|
PINK
|
|
1
|
2
|
-
|
3
|
Bath & Body
Works
|
|
80
|
23
|
(2)
|
101
|
La Senza
|
|
266
|
1
|
(34)
|
233
|
Total
|
|
650
|
65
|
(39)
|
676
|
|
|
|
|
|
|
L BRANDS, INC. AND
SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF INCOME
|
THIRTEEN WEEKS
ENDED AUGUST 1, 2015 AND AUGUST 2, 2014
|
(Unaudited)
|
(In thousands
except per share amounts)
|
|
|
|
|
|
|
|
2015
|
|
2014
|
Net Sales
|
|
$ 2,765,237
|
|
$ 2,675,311
|
Costs of Goods Sold,
Buying and Occupancy
|
|
(1,651,391)
|
|
(1,630,951)
|
Gross
Profit
|
|
1,113,846
|
|
1,044,360
|
General,
Administrative and Store Operating Expenses
|
|
(710,920)
|
|
(668,418)
|
Operating
Income
|
|
402,926
|
|
375,942
|
Interest
Expense
|
|
(77,777)
|
|
(81,631)
|
Other
Income
|
|
(1,921)
|
|
1,962
|
|
|
|
|
|
Income Before Income
Taxes
|
|
323,228
|
|
296,273
|
Provision for Income
Taxes
|
|
120,751
|
|
107,916
|
|
|
|
|
|
Net
Income
|
|
$
202,477
|
|
$
188,357
|
|
|
|
|
|
Net Income Per
Diluted Share
|
|
$
0.68
|
|
$
0.63
|
|
|
|
|
|
Weighted Average
Shares Outstanding
|
|
296,913
|
|
297,342
|
L BRANDS, INC. AND
SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF INCOME
|
TWENTY-SIX WEEKS
ENDED AUGUST 1, 2015 AND AUGUST 2, 2014
|
(Unaudited)
|
(In thousands
except per share amounts)
|
|
|
|
|
|
|
|
2015
|
|
2014
|
Net Sales
|
|
$ 5,277,176
|
|
$ 5,066,541
|
Costs of Goods Sold,
Buying and Occupancy
|
|
(3,107,372)
|
|
(3,040,089)
|
Gross
Profit
|
|
2,169,804
|
|
2,026,452
|
General,
Administrative and Store Operating Expenses
|
|
(1,395,036)
|
|
(1,314,399)
|
Operating
Income
|
|
774,768
|
|
712,053
|
Interest
Expense
|
|
(157,725)
|
|
(165,954)
|
Other
Income
|
|
75,774
|
|
5,615
|
|
|
|
|
|
Income Before Income
Taxes
|
|
692,817
|
|
551,714
|
Provision for Income
Taxes
|
|
239,874
|
|
206,375
|
|
|
|
|
|
Net
Income
|
|
$
452,943
|
|
$
345,339
|
|
|
|
|
|
Net Income Per
Diluted Share
|
|
$
1.52
|
|
$
1.16
|
|
|
|
|
|
Weighted Average
Shares Outstanding
|
|
298,028
|
|
297,333
|
L BRANDS, INC. AND
SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
TWENTY-SIX WEEKS
ENDED AUGUST 1, 2015 AND AUGUST 2, 2014
|
|
(Unaudited)
|
|
(In thousands
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
Adjustments
|
|
Adjusted
|
|
Reported
|
|
Net Sales
|
|
$ 5,277,176
|
|
$
-
|
|
$ 5,277,176
|
|
$ 5,066,541
|
|
Costs of Goods Sold,
Buying & Occupancy
|
|
(3,107,372)
|
|
|
|
(3,107,372)
|
|
(3,040,089)
|
|
Gross
Profit
|
|
2,169,804
|
|
-
|
|
2,169,804
|
|
2,026,452
|
|
General,
Administrative and Store Operating Expenses
|
|
(1,395,036)
|
|
|
|
(1,395,036)
|
|
(1,314,399)
|
|
Operating
Income
|
|
774,768
|
|
-
|
|
774,768
|
|
712,053
|
|
Interest
Expense
|
|
(157,725)
|
|
-
|
|
(157,725)
|
|
(165,954)
|
|
Other
Income
|
|
75,774
|
|
(78,057)
|
|
(2,283)
|
|
5,615
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Income
Taxes
|
|
692,817
|
|
(78,057)
|
|
614,760
|
|
551,714
|
|
Provision for Income
Taxes
|
|
239,874
|
|
(9,079)
|
|
230,795
|
|
206,375
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
$
452,943
|
|
$
(68,978)
|
|
$
383,965
|
|
$
345,339
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Per
Diluted Share
|
|
$
1.52
|
|
|
|
$
1.29
|
|
$
1.16
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Shares Outstanding
|
|
298,028
|
|
|
|
298,028
|
|
297,333
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to
Consolidated Statements of Income and Reconciliation of Adjusted
Results for additional information.
|
|
|
|
|
|
|
|
|
|
|
L BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED STATEMENTS OF INCOME
AND
RECONCILIATION OF ADJUSTED RESULTS
(Unaudited)
The "Adjusted Results" provided in the attached unaudited
Consolidated Statements of Income and Reconciliation of Adjusted
Results are non-GAAP financial measures and reflect the
following:
Fiscal 2015
In the second quarter of 2015, there were no adjustments to
results.
In the first quarter of 2015, adjusted results exclude the
following:
- A $78.1 million pre-tax gain
($69.0 million net of tax) included
in other income, related to the sale of our remaining interest in
the third-party apparel sourcing business.
Fiscal 2014
In the first and second quarter of 2014, there were no
adjustments to results.
The Unaudited Adjusted Consolidated Statements of Income should
not be construed as an alternative to the reported results
determined in accordance with generally accepted accounting
principles. Further, the Company's definition of adjusted
income information may differ from similarly titled measures used
by other companies. While it is not possible to predict
future results, management believes the adjusted information is
useful for the assessment of the ongoing operations of the Company.
The Unaudited Adjusted Consolidated Statements of Income should be
read in conjunction with the Company's historical financial
statements and notes thereto contained in the Company's quarterly
reports on Form 10-Q and annual report on Form 10-K.
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SOURCE L Brands, Inc.