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BRIEF-L Brands Announces Plan To Separate Bath & Body Works And Victoria’S Secret Into Two Industry-Leading Publicly Traded Companies

05/11/2021 08:18
BRIEF-L Brands Announces Plan To Separate Bath & Body Works And Victoria’S Secret Into Two Industry-Leading Publicly Traded Companies

- L Brands Inc LB.N:

  • L BRANDS ANNOUNCES PLAN TO SEPARATE BATH & BODY WORKS AND VICTORIA’S SECRET INTO TWO INDUSTRY-LEADING PUBLICLY TRADED COMPANIES

  • Q1 REVENUE $3.024 BILLION VERSUS REFINITIV IBES ESTIMATE OF $2.89 BILLION

  • TRANSACTION EXPECTED TO BE COMPLETED IN AUGUST 2021

  • COMPANY PLANS TAX-FREE SPIN-OFF OF VICTORIA'S SECRET TO L BRANDS SHAREHOLDERS

  • EXPECTS TO REPORT Q1 EARNINGS PER SHARE OF APPROXIMATELY $0.97

  • Q1 EPS EXPECTATION INCLUDES CHARGE RELATED TO EARLY EXTINGUISHMENT OF DEBT OF $0.28/SHARE

  • ANDREW MESLOW, CHIEF EXECUTIVE OFFICER OF L BRANDS, WILL CONTINUE TO HOLD THIS POSITION AND LEAD BATH & BODY WORKS FOLLOWING SPIN-OFF.

  • THROUGHOUT REVIEW PROCESS FOR VICTORIA'S SECRET, COMPANY RECEIVED INTEREST FROM AND HELD DISCUSSIONS WITH MULTIPLE POTENTIAL BUYERS.

  • MARTIN WATERS, CEO OF VICTORIA'S SECRET, WILL CONTINUE TO LEAD NEW STANDALONE VICTORIA'S SECRET BUSINESS FOLLOWING SEPARATION.

  • EXPECTS TO REPORT Q1 ADJUSTED EPS OF ABOUT $1.25 VERSUS PREVIOUS GUIDANCE OF $0.85 TO $1.00

  • Q1 2020 SALES WERE NEGATIVELY IMPACTED BY CLOSURE OF STORES FOR ABOUT HALF QUARTER DUE TO COVID-19 PANDEMIC

  • AT BATH & BODY WORKS, NET SALES WERE $1.469 BILLION FOR Q1 VERSUS NET SALES OF $760.6 MILLION

  • AT VICTORIA'S SECRET, NET SALES WERE $1.55 BILLION FOR Q1 VERSUS $893.6 MILLION

Source text for Eikon: ID:nGNXb95RJ9

Further company coverage: LB.N


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