Attached files
| file | filename |
|---|---|
| 8-K - 8-K - Bath & Body Works, Inc. | july2017salesrelease.htm |
Exhibit 99.1
L BRANDS REPORTS JULY 2017 SALES AND UPDATES SECOND
QUARTER EARNINGS GUIDANCE
Columbus, Ohio (Aug. 3, 2017) - L Brands, Inc. (NYSE: LB) reported net sales of $767.7 million for the four weeks ended July 29, 2017, compared to net sales of $777.0 million for the four weeks ended July 30, 2016. Comparable sales decreased 7 percent for the four weeks ended July 29, 2017. For July, the exit of the swim and apparel categories had a negative impact of about 4 percentage points and 5 percentage points to total company and Victoria’s Secret comparable sales, respectively.
The company reported net sales of $2.755 billion for the 13 weeks ended July 29, 2017, compared to sales of $2.890 billion for the 13 weeks ended July 30, 2016. The company reported a comparable sales decrease of 8 percent for the 13 weeks ended July 29, 2017. For the 13 weeks ended July 29, 2017, the exit of the swim and apparel categories had a negative impact of about 6 percentage points and 9 percentage points to total company and Victoria’s Secret comparable sales, respectively.
The company reported net sales of $5.192 billion for the 26 weeks ended July 29, 2017, compared to sales of $5.504 billion for the 26 weeks ended July 30, 2016. Comparable sales decreased 9 percent for the 26 weeks ended July 29, 2017. For the 26 weeks ended July 29, 2017, the exit of the swim and apparel categories had a negative impact of about 6 percentage points and 9 percentage points to total company and Victoria’s Secret comparable sales, respectively.
The company stated that it expects to report second quarter earnings per share at the high end of its previous guidance range of $0.40 to $0.45 per share.
To hear further commentary provided on L Brands’ prerecorded July sales message, call 1-866-639-7583, or log onto www.LB.com for an audio replay. The company will release its second quarter earnings after the close of the market on Aug. 16 and hold its conference call at 9 a.m. Eastern on Aug. 17.
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 3,077 company-owned specialty stores in the United States, Canada, the United Kingdom and Greater China, and its brands are sold in more than 750 additional franchised locations worldwide. The company’s products are also available online at www.VictoriasSecret.com, www.BathandBodyWorks.com, www.HenriBendel.com and www.LaSenza.com.
VICTORIA'S SECRET / BATH & BODY WORKS / PINK / LA SENZA / HENRI BENDEL
Three Limited Parkway Columbus, OH 43230 www.LB.com
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
We caution 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 July sales call or made by our company or our management 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 July sales call or otherwise made by our company or our management:
• | 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 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 internationally and related risks; |
• | our independent franchise, license and wholesale partners; |
• | our direct channel businesses; |
• | our ability to protect our reputation and our brand images; |
• | our ability to attract customers with marketing, advertising and promotional programs; |
• | our ability to protect our trade names, trademarks and patents; |
• | the highly competitive nature of the retail industry and the segments in which we operate; |
• | consumer acceptance of our products and our ability to manage the life cycle of our brands, 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, significant health hazards, environmental hazards or natural disasters; |
• | 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; |
• | our geographic concentration of supplier and distribution facilities in central Ohio; |
• | fluctuations in foreign currency exchange rates; |
• | stock price volatility; |
• | our ability to pay dividends and related effects; |
• | our ability 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 associates and manage labor-related costs; |
• | the ability of our manufacturers to deliver products in a timely manner, meet quality standards and comply with applicable laws and regulations; |
VICTORIA'S SECRET / BATH & BODY WORKS / PINK / LA SENZA / HENRI BENDEL
Three Limited Parkway Columbus, OH 43230 www.LB.com
• | fluctuations in product input costs; |
• | our ability to adequately protect our assets from loss and theft; |
• | 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 ability to maintain the security of customer, associate, supplier or company information; |
• | our ability to comply with regulatory requirements; |
• | legal and compliance matters; and |
• | tax, trade and other regulatory 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 July sales call to reflect circumstances existing after the date of this press release 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 2016 Annual Report on Form 10-K.
For further information, please contact:
L Brands: | ||
Investor Relations | Media Relations | |
Amie Preston | Tammy Roberts Myers | |
(614) 415-6704 | (614) 415-7072 | |
apreston@lb.com | communications@lb.com | |
VICTORIA'S SECRET / BATH & BODY WORKS / PINK / LA SENZA / HENRI BENDEL
Three Limited Parkway Columbus, OH 43230 www.LB.com
L BRANDS
JULY 2017
Comparable Sales Increase (Decrease) (Stores and Direct):
July | July | Second Quarter | Second Quarter | Year- to- Date | Year- to- Date | ||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||
Victoria's Secret1 | (10%) | —% | (14%) | 2% | (14%) | 2% | |||||
Bath & Body Works1 | 1% | 6% | 6% | 5% | 4% | 6% | |||||
L Brands2 | (7%) | 2% | (8%) | 3% | (9%) | 3% | |||||
1 - Results include company-owned stores in the U.S. and Canada and direct sales.
2 - Results include company-owned stores in the U.S., Canada, the U.K. and Greater China and direct sales.
Comparable Sales Increase (Decrease) (Stores Only):
July | July | Second Quarter | Second Quarter | Year- to- Date | Year- to- Date | ||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||
Victoria's Secret1 | (9%) | (1%) | (11%) | 1% | (11%) | 1% | |||||
Bath & Body Works1 | (1%) | 4% | 4% | 3% | 2% | 4% | |||||
L Brands2 | (7%) | —% | (6%) | 1% | (7%) | 2% | |||||
1 - Results include company-owned stores in the U.S. and Canada.
2 - Results include company-owned stores in the U.S., Canada, the U.K. and Greater China.
Total Sales (Millions):
Second Quarter | Second Quarter | Year- to- Date | Year- to- Date | ||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Victoria's Secret1 | $ | 1,351.0 | $ | 1,469.1 | $ | 2,597.5 | $ | 2,850.3 | |||||||
Victoria's Secret Direct | 295.3 | 398.3 | 581.8 | 757.9 | |||||||||||
Total Victoria's Secret | $ | 1,646.3 | $ | 1,867.4 | $ | 3,179.3 | $ | 3,608.2 | |||||||
Bath & Body Works1 | $ | 753.0 | $ | 709.1 | $ | 1,341.5 | $ | 1,295.7 | |||||||
Bath & Body Works Direct | 107.3 | 92.3 | 196.9 | 165.9 | |||||||||||
Total Bath & Body Works | $ | 860.3 | $ | 801.4 | $ | 1,538.4 | $ | 1,461.6 | |||||||
VS & BBW International2 | $ | 113.9 | $ | 99.7 | $ | 217.2 | $ | 195.0 | |||||||
Other | $ | 134.5 | $ | 121.2 | $ | 256.6 | $ | 238.8 | |||||||
L Brands | $ | 2,755.0 | $ | 2,889.7 | $ | 5,191.5 | $ | 5,503.6 | |||||||
1 - Results include company-owned stores in the U.S. and Canada.
2 - Results include retail sales from company-owned stores outside of the U.S. and Canada, royalties associated with
franchised stores and wholesale sales.
VICTORIA'S SECRET / BATH & BODY WORKS / PINK / LA SENZA / HENRI BENDEL
Three Limited Parkway Columbus, OH 43230 www.LB.com
Total Company-Owned Stores:
Stores | Stores | |||||||
Operating | Operating | |||||||
at 1/28/17 | Opened | Closed | at 7/29/17 | |||||
Victoria's Secret U.S. | 998 | 2 | (6 | ) | 994 | |||
PINK U.S. | 133 | 2 | (1 | ) | 134 | |||
Victoria's Secret Canada | 37 | 2 | — | 39 | ||||
PINK Canada | 9 | — | (2 | ) | 7 | |||
Total Victoria's Secret | 1,177 | 6 | (9 | ) | 1,174 | |||
Bath & Body Works U.S. | 1,591 | 17 | (12 | ) | 1,596 | |||
Bath & Body Works Canada | 102 | — | — | 102 | ||||
Total Bath & Body Works | 1,693 | 17 | (12 | ) | 1,698 | |||
Victoria's Secret U.K. | 15 | 1 | — | 16 | ||||
PINK U.K. | 3 | — | — | 3 | ||||
Victoria's Secret Beauty and Accessories | 31 | — | (1 | ) | 30 | |||
Victoria's Secret China | — | 2 | — | 2 | ||||
Total VS & BBW International | 49 | 3 | (1 | ) | 51 | |||
Henri Bendel | 29 | — | — | 29 | ||||
La Senza U.S. | 4 | — | — | 4 | ||||
La Senza Canada | 122 | 1 | (2 | ) | 121 | |||
Total L Brands Stores | 3,074 | 27 | (24 | ) | 3,077 | |||
Total Noncompany-Owned Stores:
Stores | Stores | |||||||
Operating | Operating | |||||||
at 1/28/17 | Opened | Closed | at 7/29/17 | |||||
Victoria's Secret Beauty & Accessories - Travel Retail | 152 | 11 | (8 | ) | 155 | |||
Bath & Body Works - Travel Retail | 8 | 2 | — | 10 | ||||
Victoria's Secret Beauty & Accessories | 239 | 7 | (10 | ) | 236 | |||
Victoria's Secret | 23 | 4 | — | 27 | ||||
PINK | 5 | — | — | 5 | ||||
Bath & Body Works | 151 | 13 | (1 | ) | 163 | |||
La Senza | 203 | 4 | (9 | ) | 198 | |||
Total | 781 | 41 | (28 | ) | 794 | |||
VICTORIA'S SECRET / BATH & BODY WORKS / PINK / LA SENZA / HENRI BENDEL
Three Limited Parkway Columbus, OH 43230 www.LB.com