Victoria’s Secret parent company L Brands recorded first-quarter results that beat Wall Street expectations, despite the lingerie brand’s continuing sales decline.
The Columbus, Ohio-based L Brands said net sales totalled $2.629 billion for the first quarter, compared to sales of $2.626 billion for the quarter prior.
Likewise, comparable sales for the first quarter ended May 4 were “flat” compared to the correlating quarter in 2018, said the company.
By brand segment, first quarter comparable sales declined 5 percent at the Victoria’s Secret segment and increased 13 percent at Bath & Body Works.
The beauty and health brand also contributed to L Brands’ earnings per share result of $0.14, said the company, exceeding the company’s guidance of about breakeven.
For the three-month period, first quarter operating income was $153.3 million compared to $154.8 million last year, and net income was $40.3 million compared to $47.5 million last year.
Shares of L Brands rose nearly 11% in aftermarket trading Wednesday.
The company updated its guidance for 2019 full-year earnings per share to between $2.30 to $2.60 from $2.20 to $2.60 previously, and issued guidance for second quarter earnings per share between $0.15 and $0.20.
L Brands said it closed 35 and opened one company-owned Victoria’s Secret stores in the first quarter.
After Victoria’s Secret saw a $500 million drop in annual revenues after pulling its bathing suits off the market in 2016, the brand recently decided to reintroduce swimwear.
L Brands operates brands Victoria’s Secret, Pink and Bath & Body Works. The American company operates 2,920 company-owned specialty stores in the United States, Canada, the United Kingdom and Greater China. The brands are also sold in more than 650 franchised locations worldwide, as well as online.