L Brands Inc. shares sank 11.5% in late Wednesday trading after the Victoria's Secret parent gave weak guidance. Net income was $631.7 million, or $2.18 per share, compared with $636.0 million, or $2.15 per share, last year. Adjusted EPS was $2.03, beating the $1.90 FactSet consensus. Sales were $4.49 billion, up from $4.40 billion and meeting the FactSet consensus. Same-store sales for the quarter were flat, also meeting the FactSet consensus. However, same-store sales at Victoria's Secret declined 3%, while at Bath & Body Works, same-store sales increased 5%. L Brands expects 2017 EPS between $3.05 and $3.35, falling short of the $3.61 FactSet consensus. The company expects to report a mid-to-high-teens same-store sales decline in the month of February, reflecting declines at both Victoria's Secret and Bath & Body Works. L Brands' exit from the swim and apparel categories will also hurt same-store sales for the month by 6 percentage points, the company said. L Brands shares are down 30.8% for the last year while the S&P 500 index is up 21.5% for the same period.
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