Shares of L Brands fell nearly 7 percent after the company lowered its guidance for the year.
The retailer, which owns stores such as Victoria’s Secret and Bath & Body Works, beat Wall Street’s expectations. It reported second quarter earnings of 48 cents per share and revenue of $2.76 billion, compared with Thomson Reuters expectations of 44 cents per share and $2.75 billion, respectively.
A decline in same-store sales, an important measure for retailers, overshadowed the earnings beat. Comparable sales fell 8 percent. The company said the results were below its expectations.
The sales decline led the company to lower its earnings guidance for the year to between $3.00 and $3.20 per share from $3.10 and $3.40 per share. The company issued third quarter estimates between 25 cents and 30 cents per share, which were below expectations of 36 cents a share.
Victoria’s Secret continued to struggle this quarter. Comparable sales decreased 14 percent. They increased 2 percent in the same period time last year.
Victoria’s Secret is still feeling the effects of its decision to stop selling swimwear and apparel. L Brands said the exit negatively affected its comparable sales by 6 percentage points and Victoria’s Secret’s comparable sales by 9 percentage points.
The company will hold a call with investors about its second quarter earnings Thursday morning.