Executive Summary

• L Brands reported 1Q17 adjusted EPS of $0.33, down 44.1% from the year-ago quarter, but above the $0.29 consensus estimate. Total revenues were $2.44 billion versus expectations of $2.46 billion, and were down 6.8% year over year.
• Total comps declined by 9% for the quarter. Victoria’s Secret comps declined by 14% versus a 2% increase in the year-ago period. Bath & Body Works comps increased by 2% versus a 6% increase in the year-ago quarter.
• The company raised its FY17 EPS guidance to $3.10–$3.40 from $3.05–$3.35, citing a lower tax rate; consensus calls for full-year EPS of $3.22. L Brands expects 2Q17 EPS of $0.40–$0.45, slightly below the $0.46 consensus estimate. The company expects May comps to decrease by mid- to high-single digits.