L Brands beats by $0.01, beats on revs; comps +4%; guides Q4 EPS in-line; cuts dividend to reduce debt; names John Mehas as CEO of Victoria's Secret Lingerie
- Reports Q3 (Oct) earnings of $0.16 per share, excluding non-recurring items, $0.01 better than the S&P Capital IQ Consensus of $0.15; revenues rose 6.0% year/year to $2.77 bln vs the $2.70 bln S&P Capital IQ Consensus.
- Same store comps in Q3 were +4%.
- Co issues in-line guidance for Q4 (Jan), sees EPS of $1.90-2.10 vs. $2.00 S&P Capital IQ Consensus.
Other News:
- Dividend Cut: Co plans to reduce its annual dividend to $1.20 from $2.40 currently, beginning with the quarterly dividend to be paid in March 2019. The planned reduction will result in a dividend payout ratio that is more consistent with the company's past practice, and a dividend yield in line with relevant comparisons. The $325 mln in cash made available from the dividend reduction will be used primarily to contribute to the deleveraging of the company's balance sheet over time.
- Victoria's Secret Lingerie Leadership Change: Co also announces that John Mehas has been named CEO of Victoria's Secret Lingerie, effective early 2019, replacing Jan Singer, who has resigned. Mehas is currently serving as President of Tory Burch, the iconic lifestyle brand. Previously he led Club Monaco, a Polo Ralph Lauren brand, for 13 years as President and CEO.
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