L Brands Q3 earnings accelerate 25 percent

L Brands earnings per share for the third quarter ended October 31, 2015, increased 25 percent to 0.55 dollar compared to 0.44 dollar for the quarter ended November 1, 2014. Operating income increased 19 percent to 338.8 million dollars compared to 284.1 million dollars last year, and net income was 164 million dollars compared to 131.8 million dollars last year.

“We delivered record results in the third quarter. Our brands are differentiated and have high emotional content and we continue to deliver new, compelling merchandise in an exciting in-store experience. We are pleased with our month-to-date performance and we are well-positioned for the most significant part of our year which is in front of us,” said Leslie H. Wexner, Chairman and CEO of L Brands.

Third quarter highlights and outlook

The company reported net sales of 2.482 billion dollars, an increase of 7 percent compared to net sales of 2.319 billion dollars for the quarter ended November 1, 2014. Comparable store sales increased 7 percent.

The company expects 2015 fourth quarter earnings per share to be 1.85 dollars to 1.95 dollars. The company raised its adjusted full-year earnings forecast to 3.69 dollars to 3.79 dollars per share from 3.58 dollars to 3.73 dollars previously, which incorporates the third quarter earnings beat to its previous forecast and increased fourth quarter interest expense of approximately 0.04 dollar per share related to its recent 1 billion dollars note issuance. The full-year guidance also includes the previously announced negative foreign exchange impact of approximately 0.12 dollar per share.