People walk past a Victoria’s Secret store in Barcelona.
John Milner | LightRocket | Getty Images
Victoria’s Secret parent L Brands raised its quarterly outlook on Thursday, saying it had strong sales in January.
It also said its Chief Financial Officer Stuart Burgdoerfer will retire and leave the company later this year. Burgdoerfer is also serving as interim CEO of the lingerie retailer.
The company increased its fourth-quarter earnings guidance from $2.70 to $2.80 per share to $2.95 to $3.00 per share. It said it expects same-store sales to increase by 10% in the quarter, which includes a 22% increase at Bath & Body Works and a 3% drop at Victoria’s Secret.
L Brands reiterated plans to separate its two brands, Victoria’s Secret and the faster-growing Bath & Body Works, and said it plans to complete that separation by August.
Shares were up nearly 5% early Thursday. They’ve risen about 85% over the past year, bringing the company’s market value to $12.74 billion.
In a news release Thursday, the company said its board got updates from its financial advisors, Goldman Sachs and JPMorgan, at a January meeting. It is considering a spinoff of Victoria’s Secret into a public company or the sale of the business.
The company has been going through a reorganization as it tries to stabilize its flagship brand. It’s benefited from strong sales at its other retail chain, Bath & Body Works, during the pandemic, as Americans stock up on soap and hand sanitizer.
It reported stronger-than-expected holidays, with same-store sales growing 5% as shoppers bought pajama pants and candles. Its same-store sales dropped 3% during the prior holiday season.
With Burgdoerfer’s planned departure in August, L Brands said Martin Waters, currently CEO of Victoria’s Secret Lingerie, will now lead Victoria’s Secret business. He will step into that role immediately.
The company will report its fourth-quarter earnings results on Feb. 24.
