Shoppers walk past a Victoria’s Secret store in a mall in San Diego, Calif., On April 22, 2021.
Bing Guan | Bloomberg | Getty Images
Victoria’s secret parent company L Brands reported first-quarter earnings and sales that beat analysts’ estimates on Wednesday.
Here’s how the company performed for the quarter ended May 1, compared to analyst expectations based on a refinitive survey:
- Earnings per share: $ 1.25 adjusted versus $ 1.21 expected
- Revenue: $ 3.02 billion versus $ 3.01 billion expected
By the fall, L Brands will spin off its Victoria’s Secret business into its own publicly traded company and said it would not make a forecast for the rest of the year.
According to L Brands, the split will allow both brands to focus more on growth and have greater financial flexibility to adapt to a changing retail landscape. It had either considered a spin-off or a sale, but said the spin-off was the best option for the company to achieve the highest value.
At the close of trading on Wednesday, L Brands shares were up around 82% since the start of the year. The company has a market capitalization of $ 18.8 billion.
The full press release from L Brands can be found here.
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