Victoria’s Secret Parent Company Makes a Comeback

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Victoria’s Secret parent company L Brands Inc. is showing signs of recovery.

The retailer, which includes Bath & Body Works in the greater portfolio, reported quarterly earnings Wednesday after the market closed, improving on top and bottom lines, and causing company shares to rise more than 14 percent in after-hours trading as a result.

For the three-month period ending Oct. 31, total revenues were $3.05 billion, up from $2.67 billion the same time last year. Meanwhile, comparable-store sales were up 38 percent during the quarter year-over-year at Bath & Body Works, but down 10 percent at Victoria’s Secret stores. L Brands has previously announced plans to spin off the Victoria’s Secret business — including Victoria’s Secret lingerie, Victoria’s Secret Beauty and Pink — into a private company, leaving Bath & Body Works to be a standalone public firm, but has yet to release a solid date.

Last summer, Victoria’s Secret closed its Hong Kong flagship. In the most recent quarter, the company restructured lease terms on two of its Mainland China flagships, a move that the company expects will lead to reduced overhead expenses.

 

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