Research Desk Line-up: Genesco Post Earnings Coverage
LONDON, UK / ACCESSWIRE / September 6, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on L Brands, Inc. (NYSE: LB), which can be viewed by registering at http://protraderdaily.com/optin/'symbol=LB, following the Company's release of its financial results on August 16, 2017, for the second quarter of the fiscal year 2017. The Company's Bath & Body Works segment's revenue increased 7.3% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Apparel Stores industry. Pro-TD has currently selected Genesco Inc. (NYSE: GCO) for due-diligence and potential coverage as the Company reported on August 31, 2017, its financial results for Q2 FY18 which ended on July 29, 2017. Register for a free membership today, and be among the early birds that get access to our report on Genesco when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on LB; also brushing on GCO. With the links below you can directly download the report of your stock of interest free of charge at:
http://protraderdaily.com/optin/'symbol=LB
http://protraderdaily.com/optin/'symbol=GCO
Earnings Reviewed
For the three months ended July 29, 2017, L Brands' total revenue decreased 5.0% to $2.76 billion from $2.89 billion in Q2 FY16.
During Q2 FY17, L Brands had 3,077 stores compared to 3,052 stores in Q2 FY16. During Q2 FY17, the Company's comparable store growth was negative 6% versus positive 1% in Q2 FY16. For the reported quarter, L Brands' comparable sales growth was negative 8% versus positive 3% in Q2 FY16.
For the reported quarter, L Brands' gross profit decreased 8% to $1.03 billion from $1.11 billion in Q2 FY16. During Q2 FY17, the Company's gross margin decreased 120 basis points to 37.3% of revenue from 38.5% of revenue in Q2 FY16.
During Q2 FY17, L Brands' general administration and operations (GA&O) expenses increased 3% to $727 million from $704.69 million in Q2 FY16.
During Q2 FY17, L Brands' operating income decreased 26% to $300.9 million from $408.22 million in Q2 FY16. For the reported quarter, the Company's operating margin decreased 320 basis points to 10.9% of revenue from 14.1% of revenue in Q2 FY16.
During Q2 FY17, L Brands' net income decreased 45.0% to $138.87 million from $252.42 million in Q2 FY16. For the reported quarter, the Company's adjusted net income decreased 32.1% to $138.87 million from $204.66 million in Q2 FY16. During Q2 FY17, L Brands' diluted earnings per share (EPS) decreased 44.8% to $0.48 from $0.87 in Q2 FY16. During Q2 FY17, the Company's adjusted diluted EPS decreased 31.4% to $0.48 from $0.70 in Q2 FY16. The adjusted diluted EPS surpassed analysts' expectations of $0.44.
Segment Details
Victoria's Secret - During Q2 FY17, L Brands' Victoria's Secret segment's revenue decreased 11.8% to $1.65 billion from $1.87 billion in Q2 FY16. For the reported quarter, the segment's operating income decreased 35% to $183.1 million from $280.6 million in Q2 FY16. During Q2 FY17, the segment's comparable store sales growth was negative 11% versus positive 1% in Q2 FY16. For the reported quarter, comparable sales growth was negative 14% versus positive 2% in Q2 FY16.
Bath & Body Works - During Q2 FY17, L Brands' Bath & Body Works segment's revenue increased 7.3% to $860.3 million from $801.4 million in Q2 FY16. For the reported quarter, the segment's operating income increased 5% to $156.3 million from $148.3 million in Q2 FY16. During Q2 FY17, the segment's comparable store sales growth was 4% versus 3% in Q2 FY16. For the reported quarter, comparable sales growth was 6% versus 5% in Q2 FY16.
Balance Sheet
As on July 29, 2017, L Brands' cash and cash equivalents increased 7.1% to $1.36 billion from $1.27 billion in Q2 FY16.
During Q2 FY17, the Company's inventories decreased 6.7% to $1.12 billion from $1.20 billion in Q2 FY16.
For the reported quarter, L Brands' accounts payable decreased 4.3% to $758.55 million from $792.85 million in Q2 FY16.
During Q2 FY17, the Company's long-term debt decreased 18 basis points to $5.70 billion from $5.71 billion in Q2 FY16.
Outlook
For FY17, L Brands expects effective tax rate to be 35% and diluted EPS to be in the range of $3.0 - $3.2. The Company expects capital expenditure to be $800 million and free cash flow to be in the band of $650 million - $700 million for the fiscal year 2017.
Stock Performance
At the close of trading session on Tuesday, September 05, 2017, L Brands' stock price declined 2.08% to end the day at $36.68. A total volume of 4.18 million shares were exchanged during the session, which was above the 3-month average volume of 4.05 million shares. The Company's shares are trading at a PE ratio of 10.79 and have a dividend yield of 6.54%. At Tuesday's closing price, the stock's net capitalization stands at $10.48 billion.
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