Victoria's Secret owner L Brands' profit up in 3Q

Associated Press

COLUMBUS, Ohio (AP) -- L Brands Inc. said Wednesday that its fiscal third-quarter net income rose 25 percent, beating Wall Street's forecast as sales rose. But the owner of Victoria's Secret, Bath & Body Works and other retailers issued a modest forecast and shares slipped in after-hours trading.

The company, formerly known as Limited Brands, reported net income of $92 million, or 31 cents per share, for the quarter ended Nov. 2. That's versus $73.4 million, or 25 cents per share, in the same quarter last year. Revenue increased 6 percent to $2.17 billion.

Analysts polled by FactSet were anticipating earnings of 28 cents per share on revenue of $2.17 billion.

L Brands said that revenue from its stores open at least a year increased 3 percent. This is considered a key indicator of financial performance as it strips away the impact of recently opened and closed stores.

The company, which also owns the brands Pink, Henri Bendel and La Senza, said that it expects to earn between $1.67 and $1.82 per share for its fourth quarter; analysts were anticipating $1.83 per share. L Brands said the fourth quarter projection includes 2 cents per share of interest expense related to an October debt issuance that wasn't in its prior forecast.

The company anticipates earning between $3.07 and $3.22 per share for the full year, mostly below Wall Street's forecast of $3.19 per share.

Shares of the Columbus, Ohio-based company fell 41 cents in extended trading to $64. Its stock price increased 39 cents to close regular trading at $64.41 Wednesday, up 37 percent this year.