L Brands, Inc. reported second quarter earnings result with net sales of $2.319 billion for the quarter ended 1st August, 2020, a decrease of 20 percent compared to sales of $2.902 billion for the quarter ended 3rd August, 2019.
The company’s stores were closed during periods of time throughout the second quarter due to the COVID-19 pandemic. As of the end of the second quarter, most Bath & Body Works and Victoria’s Secret stores in North America have reopened.
Total Bath & Body Works second quarter sales in the United States and Canada were $1.197 billion, an increase of 13 percent compared to $1.061 billion last year. Sales at the Bath & Body Works direct business, which remained open throughout the quarter, increased by 191 percent to $518.6 million compared to $178.4 million last year. Bath & Body Works second quarter store comparable sales increased 87 percent during the period in which stores were open.
Total Victoria’s Secret second quarter sales in the United States and Canada were $977.5 million, a decrease of 39 percent compared to $1.606 billion last year. Sales at the Victoria’s Secret direct business, which remained open throughout the quarter, increased by 65 percent to $613.9 million compared to $373.1 million last year. Victoria’s Secret second quarter store comparable sales decreased 10 percent during the period in which stores were open.
Reported loss per share for the second quarter ended 1st August, 2020, was $0.18 compared to earnings per share of $0.14 for the quarter ended 3rd August, 2019. Second quarter operating income was $44.0 million compared to $174.6 million last year, and net loss was $49.6 million compared to net income of $37.6 million last year.
In 2020, net charges of $0.42 per share. A pre-tax non-cash charge of $117.1 million ($0.35 per share) related to the impairment of certain Victoria’s Secret lease and store assets. A pre-tax charge of $80.8 million ($0.23 per share), principally severance, related to previously announced restructuring actions; A pre-tax net gain, primarily non-cash, of $36.3 million ($0.09 per share) related to the closure and termination of the lease and the related liability for the Victoria’s Secret Hong Kong flagship store; and, an income tax benefit of $20.5 million ($0.07 per share) related to recent changes in tax legislation included in the CARES act.