L Brands reports strong growth for FY15, ups dividend by 20 percent

L Brands reported net sales 4.395 billion dollars, an increase of 8 percent for the fourth quarter ended January 30, 2016 compared to 4.069 billion dollars for the quarter ended January 31, 2015. Comparable store sales for the fourth quarter increased 6 percent. Net sales for the year were 12.154 billion dollars, an increase of 6 percent compared to 11.454 billion dollars for the year ended January 31, 2015. Comparable store sales increased 5 percent.

“We achieved our best year ever in 2015. I am very appreciative of the focus on our customers, the excellent execution and teamwork across the enterprise that drove this result. The dividend and share repurchase actions reflect confidence in our growth opportunities and commitment to delivering shareholder value,” said Leslie H. Wexner, Chairman and CEO of L Brands.

January comparable sales decline

Net sales for the four-week period ended January 30, 2016, were 811.3 million dollars, an increase of 4 percent compared to sales of 783.1 million dollars, same month, last year. However, comparable store sales decreased 2 percent. L Brands said January sales results were negatively impacted by a timing shift in the Victoria’s Secret semi-annual sale into December; otherwise, total company comps would have increased 1 percent during the month.

The company expects to report fourth quarter earnings per share of about 2.05 dollars, above its previous guidance of 1.85 dollars to 1.95 dollars. Earnings in 2016, it said, will be negatively impacted by 0.10 dollar per share in incremental interest expense related to its one billion dollars October 2015 note issuance and by continued pressure from foreign currency exchange rates.

Increases dividend by 20 percent

The company is increasing its annual ordinary dividend by 20 percent, to 2.40 dollars per share from 2 dollars per share. In addition, the company announced a special dividend of 2 dollars per share. The quarterly ordinary dividend of 0.60 dollar per share and the 2 dollars special dividend will be paid on March 4, 2016, to shareholders of record on February 19, 2016. This is the company’s 165th consecutive quarterly dividend.