While attempting to restore Victoria's Secret Brand, L Brands announced Monday that it will cut its annual average dividend by half and hire Executive Director Tory Burch to help implement the underwear chain.
A fashion company based in Columbus, Ohio, said on Monday that it will cut its dividend to $ 1.20 per share from the current $ 2.40.
Nevertheless, it exceeded expectations for a profit with a adjusted earnings per share of $ 0.16 in the third quarter, ending on November 3, 2018.
During these 13 weeks, the company posted net sales of $ 2775 million (about EUR 2,427 million), which is 6% more than the net sales of 2618 million euros (about 2290 million euros) for the quarter ending October 28, 2017 On the other hand, comparable sales increased by 4%.
The difficult situation for Victoria's Secret
The sale of Victoria's Secret, the largest division of L Brands by revenue, fell by 2 percent. These were other brands of the Bath & Body Works Group, with a 13% increase and L Brands, with a 4% increase in the takeover of the company from the bouquet, which in the third quarter 42 times recorded a tax loss of $ 8 million 37.4 million euros).
The company also announced that John Mehas will become the new director of Victoria's Secret Lingerie, which will start in early 2019. He will replace Jan Singer, who resigned this month.
Mehas currently holds the position of President Tory Burch, an iconic brand. Prior to that, Mehas led the Club Monaco, the brand of Pola Ralph Lauren, for 13 years as president and CEO.
"We made tough decisions this quarter to help us increase our focus on our core business and growth opportunities," said Leslie Wexner, President and CEO of L Brands.
"These activities, which include the closure of Henri Bendel and the search for alternatives to La Senzo, will strengthen our society in the long term. Looking ahead, we remain focused on implementing our strategy, which adheres to the fundamental aspects of our business, remains close to our customers and exploits the power of our commodities brands to fulfill their obligations to our customers, partners and shareholders, "he added.
Looking ahead, the company expects a fourth-quarter earnings per share to be between $ 1.90 and $ 2.10. It also increased the adjusted earnings forecast for 2018 to between $ 2.60 and $ 2.80, compared to the previous forecast between $ 2.45 and $ 2.70.
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