WASHINGTON (dpa-AFX) - Women's apparel retailer L Brands Inc (LB), Wednesday reported a better-than-expected increase in second-quarter profit, due mainly to a 6 percent sales growth.
L Brands, the operator of Victoria's Secret and Bath & Body Works chains, provided earnings guidance for the third quarter, the midpoint of which is indicated to miss Wall Street estimates. The company lifted its guidance for the full year 2014.
L Brands' same store sales for the second quarter climbed 3 percent.
Last month, many U.S. apparel retailers reported an increase in same-store sales, aided by the start of the back-to-school season shopping. Retailers used aggressive promotions to woo shopper to pick up summer clearance clothes and other items.
Consumer confidence in the United States has improved, led by strong job market, low interest rates and buoyant stock markets.
L Brands, based in Columbus, Ohio, posted second-quarter net earnings of $188.4 million or $0.63 per share, compared with $179 million or $0.61 per share last year.
On average, 27 analysts polled by Thomson Reuters expected earnings of $0.62 per share for the quarter. Analysts' estimates typically exclude special items.
Sales for the quarter climbed 6 percent to $2.68 billion from $2.52 billion a year ago. Twenty-five analysts had a consensus revenue estimate of $2.65 billion for the quarter.
For the third quarter,L Brands anticipate earnings of $0.26 to $0.31 per share, while analysts expect $0.30 per share.
For fiscal year 2014, L Brands now estimates earnings of $3.03 to $3.18 per share, from its prior guidance of $3.00 to $3.15 per share. Analysts currently expect earnings of $3.17 per share for the quarter.
L Brands operates 2,942 company-owned specialty stores,
L Brands stock closed Wednesday at $62.98, up $0.10 or 0.16%, on a volume of 2.5 million shares on the NYSE. In after hours, the stock gained $0.91 or 1.44%, trading at $63.89.
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