L Brands, Inc. (NYSE: LB) today reported 2018 fourth quarter and full-year results. Earnings per share for the 13-week fourth quarter ended Feb. 2, 2019, were $1.94 compared to $2.33 for the 14-week quarter ended Feb. 3, 2018. Thirteen-week fourth quarter operating income was $799.4 million compared to $986.6 million for the 14-week period last year, and 13-week net income was $540.1 million compared to $664.1 million for the 14-week period last year.
Reported results above include certain significant items as follows:
- In 2018: A pre-tax charge, principally non-cash, related to the sale of La Senza of $99.2 million, or $0.20 per share.
- In 2017 (totaling to a net benefit of $0.22 per share): A pre-tax charge of $45.0 million, or $0.10 per share, related to a loss on the early extinguishment of debt, and a tax benefit of $92.2 million, or $0.32 per share, related to new U.S. tax legislation.
Victoria’s Secret
Excluding these items, adjusted 13-week fourth quarter operating income was $898.7 million compared to $986.6 million for the 14-week period last year; 13-week net income was $595.2 million compared to $600.6 million for the 14-week period last year; and 13-week adjusted earnings per share were $2.14 compared to $2.11 for the 14-week period last year. Net sales were $4.852 billion for the 13-week fourth quarter ended Feb. 2, 2019, compared to $4.823 billion for the 14 weeks ended Feb. 3, 2018. Comparable sales for the 13-week fourth quarter ended Feb. 2, 2019, increased 3 percent compared to the 13 weeks ended Feb. 3, 2018.
Full-Year Results
Earnings per share for the 52-week year ended Feb. 2, 2019, were $2.31 compared to $3.42 for the 53-week year ended Feb. 3, 2018. Fifty-two week full-year operating income was $1.237 billion compared to $1.728 billion for the 53-week period last year, and 52-week net income was $643.9 million compared to $983.0 million for the 53-week period last year. Excluding significant items, adjusted 52-week full-year earnings per share were $2.82 compared to $3.20 for the 53-week period last year; 52-week adjusted operating income was $1.437 billion compared to $1.728 billion for the 53-week period last year; and 52-week adjusted net income was $786.7 million compared to $919.5 million for the 53-week period last year.
2019 Outlook
The company currently expects 2019 full-year earnings per share to be between $2.20 and $2.60, including an approximately breakeven earnings per share result in the first quarter.
