L Brands Inc.: September Sales Report Transcript

Tickers: LB
SEPTEMBER SALES SCRIPT

OCTOBER 11, 2018

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    GOOD MORNING EVERYONE. THIS IS AMIE PRESTON, CHIEF INVESTOR RELATIONS OFFICER.

  • THIS IS L BRANDS' SEPTEMBER SALES REPORT FOR THE FIVE WEEK PERIOD ENDING OCTOBER 6, 2018.

  • AS A MATTER OF FORMALITY, I NEED TO REMIND YOU THAT ANY FORWARD LOOKING STATEMENTS I MAY MAKE TODAY ARE SUBJECT TO THE SAFE HARBOR STATEMENT FOUND IN OUR SEC FILINGS.

  • NET SALES FOR THE FIVE-WEEK PERIOD ENDED OCTOBER 6, 2018 WERE $1.058 BILLION COMPARED TO NET SALES OF $981.6 MILLION FOR THE FIVE-WEEK PERIOD ENDED SEPTEMBER 30, 2017.

  • COMPARABLE SALES FOR THE FIVE WEEKS ENDED OCTOBER 6, 2018 INCREASED 5% COMPARED TO THE FIVE WEEKS ENDED OCTOBER 7, 2017.

  • THE SEPTEMBER MERCHANDISE MARGIN RATE WAS DOWN TO LAST YEAR.

  • INVENTORIES PER SQUARE FOOT ENDED THE MONTH UP 20% VERSUS LAST YEAR, UP 10% ON A 2 YEAR BASIS, IN LINE WITH EXPECTATIONS. ABOUT 5 POINTS OF THE INCREASE RELATES TO THE CALENDAR SHIFT CAUSED BY THE 53-WEEK YEAR IN 2017. WE CONTINUE TO EXPECT TO END THE YEAR WITH INVENTORIES PER SQUARE FOOT UP IN THE LOW-SINGLE DIGIT RANGE.

  • NOW FOR THE INDIVIDUAL BRAND RESULTS.

VICTORIA'S SECRET

  • VICTORIA'S SECRET SEPTEMBER COMPARABLE SALES WERE UP 1%, DRIVEN BY GROWTH IN LINGERIE AND BEAUTY, PARTIALLY OFFSET BY A DECLINE IN PINK.

  • THE MERCHANDISE MARGIN RATE WAS DOWN SIGNIFICANTLY TO LAST YEAR, DRIVEN BY INCREASED PROMOTIONAL ACTIVITY.

  • IN OCTOBER WE WILL FOCUS ON NEW FASHION THROUGH OUR VERY SEXY COLLECTION IN THE LINGERIE BUSINESS AND EVERYDAY LOUNGEWEAR IN THE PINK BUSINESS.

BATH & BODY WORKS

  • AT BATH & BODY WORKS, SEPTEMBER COMPS WERE UP 13% DRIVEN BY STRONG PRODUCT ACCEPTANCE.

  • THE MERCHANDISE MARGIN RATE FOR THE MONTH WAS UP TO LAST YEAR, DRIVEN BY LOWER PROMOTIONAL ACTIVITY, PARTIALLY OFFSET BY CHANNEL SHIFT AND SUPPLY CHAIN COSTS.

  • IN OCTOBER WE WILL CONTINUE OUR NEWEST FALL FLOORSET WHICH WILL FLOW FASHION AND SEASONAL NEWNESS IN OUR CORE BUSINESSES OF BODY CARE, HOME FRAGRANCE AND SOAPS AND SANITIZERS.

  • AS PART OF AN ONGOING EFFORT TO DRIVE SHAREHOLDER VALUE AND IN ORDER TO FOCUS ON OUR LARGER CORE BUSINESSES, WE ALSO ANNOUNCED TODAY THAT WE ARE PURSUING ALL ALTERNATIVES FOR LA SENZA. LA SENZA CURRENTLY HAS 126 COMPANY-OWNED AND OPERATED STORES IN NORTH AMERICA AND 188 NON-COMPANY OWNED INTERNATIONAL STORES. OPERATING RESULTS FOR LA SENZA ARE INCLUDED IN THE OTHER SEGMENT FOR FINANCIAL REPORTING. WE ESTIMATE THAT LA SENZA'S 2018 REVENUES AND OPERATING LOSS WILL BE APPROXIMATELY $250 MILLION AND $40 MILLION, RESPECTIVELY.

  • THANK YOU FOR YOUR CONTINUING INTEREST IN L BRANDS.

Disclaimer

L Brands Inc. published this content on 11 October 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 11 October 2018 12:44:02 UTC