=L Brands (LB) reported earnings on Wed 16 Aug 17 (a/h)

L Brands beats by $0.04, reports sales in-line with preannouncement; guides Q3 EPS below consensus; lowers FY18 EPS below consensus

• Reports Q2 (Jul) earnings of $0.48 per share, $0.04 better thanthe Capital IQ Consensus of $0.44; revenues fell 4.7% year/year to $2.75 bln vs the $2.75 bln Capital IQ Consensus. 
• Preannounced comps down 8%, EPA at high en dof $0.40-0.45 range on Aug 3.
• The company reported a comparable sales decrease of 8%. VS comps -14%, B&BW +6%; store only comps -11% at VS, +4% at B&BW The exit of the swim and apparel categories had a negative impact of about 6 percentage points and 9 percentage points to total company and Victoria's Secret comparable sales, respectively. 
• Co issues downside guidance for Q3, sees EPS of $0.25-0.30 vs. $0.36 Capital IQ Consensus Estimate.
• Co issues downside guidance for FY18, lowers EPS to $3.00-3.20 from $3.10-3.40 vs. $3.22 Capital IQ Consensus. The second quarter comparable sales decline of 8 percent was below the co's expectations. Accordingly, the co's guidance for the remainder of the year reflects a more conservative sales forecast than its previous guidance.