Bath & Body Works, Inc. (formerly known as L Brands, Inc.) reported second quarter earnings results, including both Bath & Body Works and Victoria’s Secret.
The company reported net sales of US$3.318 billion for the second quarter ended 31st July, 2021, compared to net sales of US$2.319 billion for the second quarter ended 1st August, 2020. Second quarter 2020 sales were negatively impacted by the closure of stores for approximately half the quarter due to the COVID-19 pandemic. Sales for the second quarter of 2021 increased 14 percent compared to sales of US$2.902 billion in 2019.
Bath & Body Works’ net sales were US$1.704 billion for the second quarter ended 31st July, 2021, compared to net sales of US$1.253 billion for the second quarter ended 1st August, 2020. Bath & Body Works sales for the second quarter of 2021 increased 54 percent compared to the same period of 2019.
Andrew Meslow, CEO of Bath & Body Works, stated, “Due to the tremendous focus and effort of the teams across our business, Bath & Body Works reported record second quarter results, with a net sales increase of 54 percent compared to the second quarter of 2019. Anchored by our leadership position spanning key product categories, combined with our continued strong performance across channels and our growing, loyal customer base, Bath & Body Works is well positioned to continue delivering growth and profitability. We are also pleased to have completed the separation from Victoria’s Secret, which we announced on 3rd August, 2021, subsequent to the end of the second quarter. We wish the Victoria’s Secret business and associates well as they embark on their journey as a public company. As we look to the remainder of the year, we will continue to focus on executing our long-term growth strategy as a standalone business and driving value for shareholders.”
Victoria’s Secret net sales were US$1.614 billion for the second quarter ended 31st July, 2021, compared to net sales of US$1.066 billion for second quarter ended 1st August, 2020. Victoria’s Secret comparable sales for the second quarter of 2021 increased 5 percent compared to 2019.
Reported earnings per share for the second quarter were a record US$1.34 compared to a loss per share of US$0.18 for the quarter. Second quarter operating income was US$599.1 million compared to US$44.0 million last year, and net income was US$374.2 million compared to a net loss of US$49.6 million last year.
The second quarter 2020 reported results include net charges of US$0.42 per share. Excluding these special items, adjusted earnings per share for the second quarter ended were US$0.25, adjusted operating income was US$205.7 million, and adjusted net income was US$69.0 million.
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The company is forecasting third quarter earnings per share between US$0.55 and US$0.60, which excludes one-time costs related to the spin-off of Victoria’s Secret, compared to adjusted earnings per share from continuing operations of US$0.83 in 2020 and US$0.20 in 2019.