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L Brands Reports Holiday 2020 Sales and Provides Fourth Quarter Earnings Guidance
L Brands, Inc.January 7, 2021 GMT
COLUMBUS, Ohio, Jan. 07, 2021 (GLOBE NEWSWIRE) L Brands, Inc. (NYSE: LB) reported net sales of $3.836 billion for the nine weeks ended Jan. 2, 2021, compared to net sales of $3.906 billion for the nine weeks ended Jan. 4, 2020. Comparable sales increased 5 percent for the nine weeks ended Jan. 2, 2021, compared to the nine weeks ended Jan. 4, 2020.
At Bath & Body Works, comparable sales increased 17 percent for the nine weeks ended Jan. 2, 2021, including a comparable sales increase of 5 percent in stores and 64 percent sales growth in the direct channel. The merchandise margin rate for the quarter-to-date period increased significantly.
Craig Warga/Bloomberg
L Brands shares got a boost in Thursday trading after announcing a 5% increase in same-store sales for the holiday period compared to a year ago.
The retailer, which houses Bath & Body Works and Victoria’s Secret, has been trying to plot a comeback after years of underperformance at Victoria’s Secret. L Brands (ticker: LB) stock more than doubled in 2020 and was up 5.6% in Thursday trading.
Net sales for the nine weeks ending Jan. 2 came in at $3.8 billion, just below $3.9 billion in the year-ago period. Bath & Body Works saw a 17% jump in comparable sales with online sales climbing 64%. But at Victoria’s Secret, comparable sales fell 9% due to a 23% drop in store sales that was not offset by a 24% increase in online sales.
There s one bright spot retailers are in a position to benefit from:
E-commerce sales growth has been enormous and is expected to continue. Moody s projected growth of 14% to 15% for e-commerce sales in 2021, even as people are expected to return to stores as the pandemic ebbs.
Here s a list of major retailers for whom 2021 could be a make-or-break year based on USA TODAY research, public data and analyst reports:
J.C. Penney
The company was at risk of total liquidation for months as it negotiated with its creditors. After reaching a deal to sell to a consortium of property owners, including mall company Simon Property Group, J.C. Penney emerged from bankruptcy in December having closed more than 150 stores.
Dive Brief:
L Brands on Monday announced a series of leadership changes at its Bath & Body Works banner, including tapping former Ascena executive Julie Rosen as president and Ross Stores executive Deon Riley as chief human resources officer.
Rosen spent 20 years at Gap Inc. in various merchandising roles. Until September, she was president of the Loft, Ann Taylor, Lou & Grey, Ann Taylor Factory Stores and Loft Outlet at Ascena, where she worked for four years, according to her Linkedin page. Riley spent the past eight years at Ross Stores, most recently as group senior vice president of HR, culture, and diversity and inclusion, per L Brands release. Before that, she held human resources roles at Abercrombie & Fitch.