By Claudia Assis
L Brands Inc. stock rose more than 5% in the late session Wednesday after the parent company of Victoria’s Secret and Bath & Body Works called its quarterly results a “record” and said it was able to get some rent relief for its stores.
L Brands /zigman2/quotes/202062875/composite LB -1.41% said it earned $860 million, or $3.03 a share, in the fourth quarter, compared with $534 million, or $1.88 a share, in the year-ago period. Adjusted for one-time items, the company earned $3.46 a share, from $2.29 a share a year ago.
Sales rose 2% to $4.82 billion.
Analysts polled by FactSet had expected the company to report adjusted earnings of $2.91 a share on sales of $4.89 billion.
L Brands pinned the improved performance on better-than-expected sales and margins at both Victoria’s Secret and Bath & Body Works.
The company “successfully managed” promotions around the holidays while managing increased pressure from its digital sales, it said.
L Brands also said it had been negotiating rents with its landlords due to pandemic-related shutdowns, and it completed those negotiations with most landlords in the fourth quarter.
That led to rent waivers, deferrals and other forms of rent relief, the company said.
L Brands said it ended 2020 with $3.9 billion in cash. “We remain committed to reducing debt … We are evaluating our go-forward capital structure, including the best approach to reduce debt,” it said.
The stock ended the regular trading day up 1.1%.