EX-99.1 2 a991april2014salesrelease.htm PRESS RELEASE 99.1 April 2014 Sales Release


Exhibit 99.1


L BRANDS REPORTS APRIL 2014 SALES AND INCREASES
FIRST QUARTER EARNINGS GUIDANCE

Columbus, Ohio (May 8, 2014) - L Brands, Inc. (NYSE: LB) reported net sales increased 9% to $717.6 million for the four weeks ended May 3, 2014, compared to net sales of $660.5 million for the four weeks ended May 4, 2013. Comparable stores sales increased 8% for the four weeks ended May 3, 2014.

The company reported net sales of $2.391 billion for the 13 weeks ended May 3, 2014, an increase of 5% compared to sales of $2.268 billion for the 13 weeks ended May 4, 2013. Comparable stores sales increased 2% for the 13 weeks ended May 3, 2014.

The company expects to report first quarter earnings per share of $0.50 to $0.52, versus its previous estimate of $0.44 to $0.49. The company will update its full-year earnings guidance on May 21.

To hear further commentary provided on L Brands’ prerecorded April sales message, call 1-866-639-7583 (1-866-NEWS-LTD), or log onto www.LB.com for an audio replay. The company will release its first quarter earnings after the close of the market on May 21 and hold its conference call at 9:15 a.m. Eastern on May 22. The conference call is starting 15 minutes later than normal to allow for the company’s 8:30 a.m. annual meeting.

ABOUT L BRANDS:
L Brands, through Victoria’s Secret, Pink, Bath & Body Works, La Senza and Henri Bendel, is an international company. The company operates 2,923 company-owned specialty stores in the United States, Canada and the United Kingdom and its brands are sold in about 600 franchised additional locations world-wide. The company’s products are also available online at www.VictoriasSecret.com, www.BathandBodyWorks.com, www.HenriBendel.com and www.LaSenza.com.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
L Brands, Inc. cautions that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this press release or the April sales call involve risks and uncertainties and are subject to change based on various factors, many of which are beyond our control. Accordingly, our future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Words such as “estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “planned,” “potential” and any similar expressions may identify forward-looking statements. Risks associated with the following factors, among others, in some cases have affected and in the future could affect our financial performance and actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements included in this press release or the April sales call:
•
general economic conditions, consumer confidence, consumer spending patterns and market disruptions including severe weather conditions, natural disasters, health hazards, terrorist activities, financial crises, political crises or other major events, or the prospect of these events;
•
the seasonality of our business;
•
the dependence on a high volume of mall traffic and the availability of suitable store locations on appropriate terms;
•
our ability to grow through new store openings and existing store remodels and expansions;
•
our ability to successfully expand into global markets and related risks;

VICTORIA'S SECRET / BATH & BODY WORKS / PINK / LA SENZA / HENRI BENDEL
Three Limited Parkway Columbus, OH 43230 www.LB.com



•
our relationships with independent licensees and franchisees;
•
our direct channel businesses;
•
our failure to protect our reputation and our brand images;
•
our failure to protect our trade names, trademarks and patents;
•
the highly competitive nature of the retail industry generally and the segments in which we operate particularly;
•
consumer acceptance of our products and our ability to keep up with fashion trends, develop new merchandise and launch new product lines successfully;
•
our ability to source, distribute and sell goods and materials on a global basis, including risks related to:
•
political instability;
•
duties, taxes and other charges;
•
legal and regulatory matters;
•
volatility in currency exchange rates;
•
local business practices and political issues;
•
potential delays or disruptions in shipping and transportation and related pricing impacts;
•
disruption due to labor disputes; and
•
changing expectations regarding product safety due to new legislation;
•
fluctuations in foreign currency exchange rates;
•
stock price volatility;
•
our failure to maintain our credit rating;
•
our ability to service or refinance our debt;
•
our ability to retain key personnel;
•
our ability to attract, develop and retain qualified employees and manage labor-related costs;
•
the inability of our manufacturers to deliver products in a timely manner and meet quality standards;
•
fluctuations in product input costs;
•
fluctuations in energy costs;
•
increases in the costs of mailing, paper and printing;
•
claims arising from our self-insurance;
•
our ability to implement and maintain information technology systems and to protect associated data;
•
our failure to maintain the security of customer, associate, supplier or company information;
•
our failure to comply with regulatory requirements;
•
tax matters; and
•
legal and compliance matters.
We are not under any obligation and do not intend to make publicly available any update or other revisions to any of the forward-looking statements contained in this press release or the April sales call to reflect circumstances existing after the date of this report or to reflect the occurrence of future events even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized. Additional information regarding these and other factors can be found in “Item 1A. Risk Factors” in our 2013 Annual Report on Form 10-K.

For further information, please contact:    
        
Investor Relations
 
 
 
Media Relations
Amie Preston
 
 
 
Tammy Roberts Myers
(614) 415-6704
 
 
 
(614) 415-7072
apreston@lb.com
 
 
 
communications@lb.com

VICTORIA'S SECRET / BATH & BODY WORKS / PINK / LA SENZA / HENRI BENDEL
Three Limited Parkway Columbus, OH 43230 www.LB.com




L BRANDS
April 2014

Comparable Store Sales Increase (Decrease):

 

April 2014

April 2013
First Quarter
2014
First Quarter
2013
 
 
 
 
 
Victoria's Secret1
8
%
2
%
2
%
3
%
Bath & Body Works1
8
%
4
%
2
%
3
%
L Brands
8
%
2
%
2
%
3
%
Victoria's Secret Direct Sales
(3
%)
(4
%)
0
%
(6
%)

1 - Results include company-owned stores in the United States and Canada.


Total Sales (Millions):

 
First Quarter 2014
 
First Quarter 2013
 
 
 
 
Victoria's Secret Stores1
$
1,245.3

 
$
1,184.6

Victoria's Secret Direct
358.3

 
359.1

  Total Victoria's Secret
$
1,603.6

 
$
1,543.7

 
 
 
 
Bath & Body Works1
$
530.2

 
$
517.1

Bath & Body Works Direct
51.4

 
43.7

  Total Bath & Body Works
$
581.6

 
$
560.8

 
 
 
 
VSS & BBW International2
$
71.0

 
$
40.4

Other
$
135.0

 
$
123.1

L Brands
$
2,391.2

 
$
2,268.0


1 - Results include company-owned stores in the United States and Canada.
2 - Results include retail sales from company-owned stores outside of the United States and Canada, royalties associated with franchised stores and wholesale sales.




VICTORIA'S SECRET / BATH & BODY WORKS / PINK / LA SENZA / HENRI BENDEL
Three Limited Parkway Columbus, OH 43230 www.LB.com



Total Company-Owned Stores:

 
Stores
 
Stores
 
Operating
Operating
 
at 2/1/14
Opened
Closed
at 5/3/14
 
 
 
 
 
Victoria's Secret U.S.
977

1

(2
)
976

PINK U.S.
83

6

—

89

Victoria's Secret Canada
24

1

—

25

PINK Canada
10

—

—

10

   Total Victoria's Secret
1,094

8

(2
)
1,100

 
 
 
 
 
Bath & Body Works U.S.
1,559

1

(7
)
1,553

Bath & Body Works Canada
79

3

(1
)
81

   Total Bath & Body Works
1,638

4

(8
)
1,634

 
 
 
 
 
Victoria's Secret U.K.
5

2

—

7

Henri Bendel
29

—

—

29

La Senza Canada
157

—

(4
)
153

Total L Brands
2,923

14

(14
)
2,923



Total Franchise Stores:

 
Stores
 
Stores
 
Operating
Operating
 
at 2/1/14
Opened
Closed
at 5/3/14
 
 
 
 
 
Victoria's Secret Beauty & Accessories
198

13

(2
)
209

VS International (Full Assortment)
4

2

—

6

BBW International
55

4

—

59

La Senza International
331

—

(3
)
328

Total Franchise
588

19

(5
)
602



VICTORIA'S SECRET / BATH & BODY WORKS / PINK / LA SENZA / HENRI BENDEL
Three Limited Parkway Columbus, OH 43230 www.LB.com