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L Brands provides FY'18 guidance

L Brands Inc., the owner of Victoria's Secret and Bath & Body Works, on Feb. 28 provided guidance for its 2018 financial year while also reporting fourth-quarter and full-year 2017 results.

The Ohio-based specialty retailer forecast full-year 2018 EPS in a range between $2.95 and $3.25, which includes estimated first-quarter EPS of between 15 cents and 20 cents.

The guidance takes into consideration a positive impact of U.S. tax reform legislation as well as higher investment in wages and benefits, mainly for hourly workers, of about $100 million.

For the 14-week, fourth-quarter period ended Feb. 3, L Brands reported EPS of $2.33, compared with $2.18 for the prior 13-week fourth quarter ended Jan. 28, 2017, and ahead of the S&P Capital IQ consensus estimate of $2.04. The company noted that the quarter's extra week represented about 10 cents per share.

Net income for the period came in at $664.1 million, compared with $631.7 million a year ago and the S&P Capital IQ consensus estimate of $580.6 million.

Net sales for the 14 weeks were $4.82 billion, up from $4.49 billion during the 13-week period a year prior but with the extra week accounting for about $160 million in sales.

For L Brands' 53-week financial year ended Feb. 3, EPS came in at $3.42, compared with $3.98 for the 52-week year ended Jan. 28, 2017. That figure included 10 cents related to the extra week. The S&P Capital IQ full-year EPS consensus estimate was $3.14.

Net income for the year was $983.0 million, compared with $1.16 billion in the prior year and the S&P Capital IQ consensus estimate of $899.1 million.

Full-year net sales were $12.63 billion, up from $12.57 billion in the prior year.