LB - L Brands gains after strong holiday sales update

L Brands (LB) report sales of $3.836B for the nine weeks ended January 2.Comparable sales increased 5% for the period. The strong holiday performance was led by the Bath & Body Works business, which saw comparable sales jump 17%.The company also notes that the merchandise margin rate for the quarter-to-date period increased significantly. L Brands expects to report Q4 EPS of $2.70 to $2.80 vs. $1.96 consensus. CEO summary: “We are very pleased with our Holiday results, which significantly exceeded our initial expectations, driven by an increase in profitability at both Bath & Body Works and Victoria’s Secret. In this challenging environment, we maintained our focus on customer and associate safety and delivered exceptional execution. Bath & Body Works continues to deliver record results, demonstrating the strength of the brand. The turnaround at Victoria’s Secret also continues to gain momentum, driven by an improved merchandise assortment and focused execution of retail

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L Brands gains after strong holiday sales update