Executive Summary

• L Brands reported 4Q16 revenue of $4.5 billion, up 2.2% from last year’s $4.4 billion and beating the consensus estimate of $4.4 billion. Adjusted EPS was $2.03, beating the consensus estimate of $1.90.
• Total comps declined 9% for the quarter. Victoria’s Secret comps declined by 14% versus a 2% increase in the year-ago period, while Bath & Body Works comps increased by 2%, versus a 6% increase in the year-ago quarter.
• The company raised its FY17 guidance for EPS to $3.10–$3.40 from $3.05–$3.35 versus the $3.22 consensus estimate. L Brands expects 2Q17 EPS of $0.40–$0.45, slightly below the $0.46 consensus estimate.