UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): May 23, 2018
 
 
L Brands, Inc.
 
 
(Exact Name of Registrant
as Specified in Its Charter)
 
 
 
Delaware
 
 
(State or Other Jurisdiction of Incorporation)
 
 
1-8344
 
31-1029810
(Commission File Number)
 
(IRS Employer Identification No.)
 
Three Limited Parkway
Columbus, OH
 
43230
(Address of Principal Executive Offices)
 
(Zip Code)
 
 
(614) 415-7000
 
(Registrant's Telephone Number, Including Area Code)
 
 
Not Applicable
 
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o





Item 2.02. Results of Operations and Financial Condition
and
Item 7.01. Regulation FD Disclosure.
The following information is being furnished pursuant to Item 2.02, "Results of Operations and Financial Condition" and Item 7.01, “Regulation FD Disclosure”, and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
On May 23, 2018, L Brands, Inc. issued a press release setting forth its first quarter 2018 earnings. In addition, the press release contains guidance with respect to second quarter 2018 earnings and updated guidance with respect to full-year 2018 earnings. A copy of the press release is attached hereto as Exhibit 99.1 and is hereby incorporated by reference.

Item 9.01. Financial Statements and Exhibits.
Exhibit 99.1     Press Release dated May 23, 2018 announcing earnings for the first quarter 2018.




SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
L Brands, Inc.
 
 
 
 
 
 
 
 
Date:
May 23, 2018
By:
/s/ STUART B. BURGDOERFER
 
 
 
Stuart B. Burgdoerfer
 
 
 
Executive Vice President and Chief Financial Officer






Exhibit 99.1
LBRANDSA02AA12.JPG
L BRANDS REPORTS FIRST QUARTER EARNINGS

- UPDATES EARNINGS GUIDANCE -

Columbus, Ohio (May 23, 2018) - L Brands, Inc. (NYSE: LB) today reported first quarter earnings results.

Earnings per share for the first quarter ended May 5, 2018, were $0.17 compared to $0.33 for the quarter ended April 29, 2017. First quarter operating income was $154.8 million compared to $209.2 million last year, and net income was $47.5 million compared to $94.1 million last year.

The company reported net sales of $2.626 billion for the first quarter ended May 5, 2018, an increase of 8 percent compared to sales of $2.437 billion for the quarter ended April 29, 2017. Comparable sales for the first quarter ended May 5, 2018, increased 3 percent compared to the thirteen weeks ended May 6, 2017.

2018 Outlook
The company decreased its guidance for 2018 full-year earnings per share to $2.70 to $3.00 from $2.95 to $3.25 previously, and issued guidance for second quarter earnings per share between $0.30 and $0.35.

Earnings Call and Additional Information
L Brands will conduct its first quarter earnings call at 9:00 a.m. Eastern on May 24.  To listen, call 1-866-363-4673 (international dial-in number: 1-973-200-3978); conference ID 6798696.  For an audio replay, call 1-855-859-2056 (international replay number: 1-404-537-3406); conference ID 6798696 or log onto  www.LB.com .  Additional first quarter financial information is also available at  www.LB.com .

ABOUT L BRANDS:
L Brands, through Victoria’s Secret, PINK, Bath & Body Works, La Senza and Henri Bendel, is an international company. The company operates 3,069 company-owned specialty stores in the United States, Canada, the United Kingdom and Greater China, and its brands are sold in more than 800 additional franchised locations worldwide. The company’s products are also available online at www.VictoriasSecret.com , www.BathandBodyWorks.com , www.HenriBendel.com and www.LaSenza.com .


VICTORIA'S SECRET / BATH & BODY WORKS / PINK / LA SENZA / HENRI BENDEL
Three Limited Parkway Columbus, OH 43230 www.LB.com



Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
We caution that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this press release or the first quarter earnings call or made by our company or our management involve risks and uncertainties and are subject to change based on various factors, many of which are beyond our control. Accordingly, our future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Words such as “estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “planned,” “potential” and any similar expressions may identify forward-looking statements. Risks associated with the following factors, among others, in some cases have affected and in the future could affect our financial performance and actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements included in this press release or the first quarter earnings call or otherwise made by our company or our management:

•
general economic conditions, consumer confidence, consumer spending patterns and market disruptions including severe weather conditions, natural disasters, health hazards, terrorist activities, financial crises, political crises or other major events, or the prospect of these events;
•
the seasonality of our business;
•
the dependence on mall traffic and the availability of suitable store locations on appropriate terms;
•
our ability to grow through new store openings and existing store remodels and expansions;
•
our ability to successfully expand internationally and related risks;
•
our independent franchise, license and wholesale partners;
•
our direct channel businesses;
•
our ability to protect our reputation and our brand images;
•
our ability to attract customers with marketing, advertising and promotional programs;
•
our ability to protect our trade names, trademarks and patents;
•
the highly competitive nature of the retail industry and the segments in which we operate;
•
consumer acceptance of our products and our ability to manage the life cycle of our brands, keep up with fashion trends, develop new merchandise and launch new product lines successfully;
•
our ability to source, distribute and sell goods and materials on a global basis, including risks related to:
•
political instability, significant health hazards, environmental hazards or natural disasters;
•
duties, taxes and other charges;
•
legal and regulatory matters;
•
volatility in currency exchange rates;
•
local business practices and political issues;
•
potential delays or disruptions in shipping and transportation and related pricing impacts;
•
disruption due to labor disputes; and
•
changing expectations regarding product safety due to new legislation;
•
our geographic concentration of vendor and distribution facilities in central Ohio;
•
fluctuations in foreign currency exchange rates;
•
stock price volatility;
•
our ability to pay dividends and related effects;
•
our ability to maintain our credit rating;
•
our ability to service or refinance our debt;
•
our ability to retain key personnel;
•
our ability to attract, develop and retain qualified associates and manage labor-related costs;
•
the ability of our vendors to deliver products in a timely manner, meet quality standards and comply with applicable laws and regulations;
•
fluctuations in product input costs;

VICTORIA'S SECRET / BATH & BODY WORKS / PINK / LA SENZA / HENRI BENDEL
Three Limited Parkway Columbus, OH 43230 www.LB.com



•
our ability to adequately protect our assets from loss and theft;
•
fluctuations in energy costs;
•
increases in the costs of mailing, paper and printing;
•
claims arising from our self-insurance;
•
our ability to implement and maintain information technology systems and to protect associated data;
•
our ability to maintain the security of customer, associate, third-party or company information;
•
our ability to comply with regulatory requirements;
•
legal and compliance matters; and
•
tax, trade and other regulatory matters.
We are not under any obligation and do not intend to make publicly available any update or other revisions to any of the forward-looking statements contained in this press release or the first quarter earnings call to reflect circumstances existing after the date of this press release or to reflect the occurrence of future events even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized. Additional information regarding these and other factors can be found in Item 1A. Risk Factors in our 2017 Annual Report on Form 10-K.

For further information, please contact:
L Brands:
Investor Relations
 
Media Relations
Amie Preston
 
Tammy Roberts Myers
(614) 415-6704
 
(614) 415-7072
apreston@lb.com
 
communications@lb.com


VICTORIA'S SECRET / BATH & BODY WORKS / PINK / LA SENZA / HENRI BENDEL
Three Limited Parkway Columbus, OH 43230 www.LB.com



L BRANDS
FIRST QUARTER 2018

Comparable Sales Increase (Decrease) (Stores and Direct):
 
First
Quarter
 
First
Quarter
 
2018
 
2017
Victoria's Secret 1
1%
 
(14%)
Bath & Body Works 1
8%
 
2%
L Brands 2
3%
 
(9%)

1 - Results include company-owned stores in the U.S. and Canada and direct sales.
2 - Results include company-owned stores in the U.S., Canada, the U.K. and Greater China and direct sales.

Comparable Sales Increase (Decrease) (Stores Only):
 
First
Quarter
 
First
Quarter
 
2018
 
2017
Victoria's Secret 1
(5%)
 
(12%)
Bath & Body Works 1
5%
 
(1%)
L Brands 2
(2%)
 
(9%)

1 - Results include company-owned stores in the U.S. and Canada.
2 - Results include company-owned stores in the U.S., Canada, the U.K. and Greater China.

Total Sales (Millions):
 
First
Quarter
 
First
Quarter
 
2018
 
2017
Victoria's Secret 1
$
1,235.9

 
$
1,246.5

Victoria's Secret Direct
353.5

 
286.5

  Total Victoria's Secret
$
1,589.4

 
$
1,533.0

 
 
 
 
Bath & Body Works 1
$
648.6

 
$
588.4

Bath & Body Works Direct
111.8

 
89.6

  Total Bath & Body Works
$
760.4

 
$
678.0

 
 
 
 
VS & BBW International 2
$
135.1

 
$
103.3

Other
$
140.9

 
$
122.2

L Brands
$
2,625.8

 
$
2,436.5


1 - Results include company-owned stores in the U.S. and Canada.
2 - Results include retail sales from company-owned stores outside of the U.S. and Canada, royalties associated with franchised stores and wholesale sales.





VICTORIA'S SECRET / BATH & BODY WORKS / PINK / LA SENZA / HENRI BENDEL
Three Limited Parkway Columbus, OH 43230 www.LB.com




Total Company-Owned Stores:
 
Stores
 
Stores
 
Operating
Operating
 
at 2/3/18
Opened
Closed
at 5/5/18
Victoria's Secret U.S.
984

1

(5
)
980

PINK U.S.
140

—

—

140

Victoria's Secret Canada
39

—

—

39

PINK Canada
7

—

(1
)
6

   Total Victoria's Secret
1,170

1

(6
)
1,165

 
 
 
 
 
Bath & Body Works U.S.
1,592

13

(11
)
1,594

Bath & Body Works Canada
102

—

—

102

   Total Bath & Body Works
1,694

13

(11
)
1,696

 
 
 
 
 
Victoria's Secret U.K./Ireland
19

—

—

19

PINK U.K.
5

—

—

5

Victoria's Secret Beauty and Accessories
29

—

—

29

Victoria's Secret China
7

—

—

7

   Total VS & BBW International
60

—

—

60

 
 
 
 
 
Henri Bendel
27

—

(3
)
24

La Senza U.S.
5

—

—

5

La Senza Canada
119

—

—

119

Total L Brands Stores
3,075

14

(20
)
3,069


Total Noncompany-Owned Stores:
 
Stores
 
 
Stores
 
Operating
 
 
Operating
 
at 2/3/18
Opened
Closed
at 5/5/18
Victoria's Secret Beauty & Accessories - Travel Retail
156

11

(4
)
163

Bath & Body Works - Travel Retail
9

—

(2
)
7

Victoria's Secret Beauty & Accessories
241

2

(6
)
237

Victoria's Secret
32

5

—

37

PINK
5

1

—

6

Bath & Body Works
176

13

(1
)
188

La Senza
194

—

(2
)
192

Total
813

32

(15
)
830



VICTORIA'S SECRET / BATH & BODY WORKS / PINK / LA SENZA / HENRI BENDEL
Three Limited Parkway Columbus, OH 43230 www.LB.com



L BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
THIRTEEN WEEKS ENDED MAY 5, 2018 AND APRIL 29, 2017
(Unaudited)
(In thousands except per share amounts)
 
2018
 
2017
Net Sales
$
2,625,846

 
$
2,436,523

Costs of Goods Sold, Buying and Occupancy
(1,682,016
)
 
(1,533,673
)
Gross Profit
943,830

 
902,850

General, Administrative and Store Operating Expenses
(789,023
)
 
(693,658
)
Operating Income
154,807

 
209,192

Interest Expense
(97,899
)
 
(100,608
)
Other Income
1,401

 
9,863

Income Before Income Taxes
58,309

 
118,447

Provision for Income Taxes
10,792

 
24,393

Net Income
$
47,517

 
$
94,054

 
 
 
 
Net Income Per Diluted Share
$
0.17

 
$
0.33

 
 
 
 
Weighted Average Shares Outstanding
281,587

 
289,327


VICTORIA'S SECRET / BATH & BODY WORKS / PINK / LA SENZA / HENRI BENDEL
Three Limited Parkway Columbus, OH 43230 www.LB.com