- Prachi Singh |
Net sales for the year were 12.632 billion dollars compared to 12.574 billion dollars for the 52 weeks ended January 28, 2017. Comparable sales for the 53 weeks decreased 3 percent. L Brand said, for the 53 weeks, the exit of the swim and apparel categories had a negative impact of about 3 percentage points and 5 percentage points to total company and Victoria’s Secret comparable sales, respectively.
For the full year, earnings per share were 3.42 dollars including 0.10 dollar related to the extra week compared to 3.98 dollars for the 52-week year ended January 28, 2017. Excluding significant items, adjusted 53-week full-year earnings per share decreased 14 percent to 3.20 dollars including 0.10 dollar related to the extra week compared to 3.74 dollars last year, adjusted operating income decreased 15 percent to 1.728 billion dollars and adjusted net income decreased 16 percent to 919.5 million dollars.
Q4 comparable sales up 2 percent
L Brands earnings per share for the 14-week fourth quarter were 2.33 dollars compared to 2.18 dollars for the 13-week quarter last year. L Brands said, the extra week in 2017 represented approximately 0.10 dollar per share. The company added that adjusted net income increased 2 percent to 600.6 million dollars and adjusted earnings per share increased 4 percent to 2.11 dollars, which includes 0.10 dollar related to the extra week compared to 2.03 dollars last year.
Net sales for the quarter, were 4.823 billion dollars for the quarter compared to 4.489 billion dollars for the 13 weeks ended January 28, 2017. Comparable sales increased 2 percent and the extra week in 2017 represented around 160 million dollars in sales.
Fourth quarter operating income was 986.6 million dollars compared to 987.6 million dollars last year, and net income was 664.1 million dollars compared to 631.7 million dollars last year. Full-year operating income was 1.728 billion dollars compared to 2.003 billion dollars last year, and net income was 983 million dollars compared to 1.158 billion dollars last year.
The company currently expects 2018 full-year earnings per share to be between 2.95 dollars and 3.25 dollars, including earnings per share between 0.15 dollar and 0.20 dollar in the first quarter. This forecast, the company said, reflects the benefit of a lower tax rate due to tax reform legislation and an incremental investment in wages and benefits, principally for hourly associates, of approximately 100 million dollars.
Picture:L Brands website