L Brands Inc. reported better-than-expected quarterly sales on Wednesday, as it benefited from a surge in demand for Bath & Body Works’ products, sending shares of the Victoria’s Secret parent nearly 6 percent higher after the bell.
A sharper focus on hygiene standards during the pandemic has boosted sales of soaps, lotions and sanitizers at Bath & Body Works, helping L Brands offset continued weakness at its Victoria’s Secret unit.
Chief Executive Officer Andrew Meslow said the results were driven by “continued strength at Bath & Body Works, and a significant improvement in performance at Victoria’s Secret.”
Comparable sales at Bath & Body Works surged 56 percent in the third quarter, while they rose 4% at Victoria’s Secret.
The company reported a net income of $330.6 million, or $1.17 per share, compared with a loss of $252 million, or 91 cents per share, a year earlier, when it recorded some impairment charges.
Net sales rose 14% to $3.06 billion, exceeding analysts’ average estimate of $2.67 billion, according to IBES data from Refinitiv.
By Nivedita Balu; editor: Aditya Soni