Shares of Victoria's Secret parent company L Brands tumble 11 percent on weak 2017 guidance
Shares of L Brands (LB) dropped more than 11 percent after the market closed Wednesday, after the parent company of Victoria's Secret issued first-quarter and 2017 guidance that fell well short of Wall Street's expectations.
The sharp drop in the company's stock price came as the specialty apparel chain said it earned $2.03 a share in the fiscal fourth quarter, excluding items, topping analysts' estimate of $1.90 per share, according to Thomson Reuters.
The company's revenue, however, came up short. L Brands recorded sales of $4.49 billion during the holiday period, compared with a Thomson Reuters forecast of $4.51 billion.
A year ago, L Brands earned $2.15 a share on $4.4 billion in sales.
The Victoria's Secret brand has been under pressure as the chain reworks its business model. Changes include exiting swimwear and most of its apparel merchandise, and discontinuing its print catalogs.
This is a developing story. Please check back for updates.
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