Drop in bra sales didn't hurt Victoria's Secret parent L Brands stock

L Brands expects fourth-quarter earnings to tick up

Shares of Victoria's Secret parent L Brands are up despite bra sales being down.

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The Ohio-based brand, which also owns Bath and Body Works, said lace-trimmed items, including bras and women’s lingerie, dipped 12 percent in the last two months of 2019. That followed a 4 percent drop in the category last year and a dip in foot traffic in stores.

Net sales for L Bands reached $3.9 billion for the nine weeks ending Jan. 4, 2020, the firm said. That’s compared to $4 billion for the nine weeks ended Jan. 5, 2019. Comparable sales took a tumble, too, falling 3 percent for the nine weeks ended Jan. 4, 2020.

Still, L Brands shares rose 4.5 percent to $18.9 Thursday, as executives said Victoria’s Secret’s semi-annual sale is tracking well and women’s lingerie margins improved.

TickerSecurityLastChangeChange %
LBL BRANDS INC.10.71+0.56+5.52%

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“Bra sales were down, but margins were better,” Gabriella Santaniello, a retail consultant and president of A Line Partners, told The New York Post. She said the reason for the decline was because the company was “less promotional” over the holiday season.

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L Brands said it expects to report fourth-quarter earnings of about $1.85 per share compared to its previous guidance of $2. Its stock is down 26 percent on the year but has ticked up nearly 12 percent in the last three months and 3 percent in the last week.

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The company brought in $13.2 billion in sales and revenue last year.

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