L Brands's Latest Semi Annual Report: The Results Are Still Disappointing.

In August 21st, Victoria s Secret, the parent company of the American underwear giant Vitoria, and L Brands, the fashion group of the United States, announced the key financial information in the 2019 half year. Despite the disappointing sales performance of the group's core brand, its sales fell by 6% compared to that of the stores, but earnings per share exceeded analysts' expectations.

After the announcement, the share price of L Brands rose 2.3% compared to the opening day, closing at 20.35 U.S. dollars per share. So far, the group's share price has fallen by about 26% this year.

The group said that in the wake of the promotion of the new CEO John Mehas and the Pink brand CEO Amy Hauk, the new style of autumn has greatly changed, and the products not only meet the needs of consumers, but also conform to the current trend. Brand reform measures will gradually increase in the third quarter, and they believe that these new products will be loved by consumers and change the trend of the decline of the business. The company has not given a clear response to the rumors that the company will cancel the big show this year.

Jen Redding, an analyst at Wedbush, a securities firm, said that although the group had improved its financial targets for the whole year, they still had reservations about the future development of L Brands. They need to see that they have established a solid relationship with consumers and show signs of improvement in their performance.

People's love for Internet shopping and the growth of demand for diversified underwear have gradually lost the popularity of consumers who have been flaunting slender and sexy stature. Along with the rise of new lingerie brands such as Savage x Fenty, Aerie and ThirdLove, which advocated pluralism and inclusiveness, the performance of the company declined. Earlier, L Brands's radical investor, hedge fund Barington Capital even asked the group to divest the secret, or split the Bath & Body Works into the market.

Earlier, some investors filed a collective prosecution against L Brands. They say the group has been misleading investors to make them think the group is in good financial condition, but that is not the case.

In order to speed up the growth of business, L Brands has made a series of reforms to the brand in the past few months.

Re launched the most popular swimsuit series. In order to focus on the development of core underwear business, the company suspended its bathing business in 2016 and lost nearly $500 million in sales.

Closed the 53 poor stores in the US.

Exchange of blood for management. Hire Tory Burch former brand President John Mehas as the chief executive of the company, and appoint Amy Hauk, director of Bath & Body Works sales and product department as the new chief executive officer of Pink.

Stop playing the annual show through the TV network.

In order to demonstrate the inclusiveness and diversity of the brand, it also hired the first cross sex model to shoot the blockbuster.

The key financial data for L Brands, as of the second quarter of fiscal year 2019, ended in August 3, 2019, are as follows:

Net sales of $2 billion 900 million, compared with $2 billion 980 million last year, less than analysts' expectations of $2 billion 950 million.

Operating profit of $175 million, compared to $228 million a year ago.

Net profit of $37 million 600 thousand, compared to $99 million a year ago, after diluted earnings per share of $0.14, compared to $0.36 per share last year.

After adjustment, net profit was $67 million 600 thousand, earnings per share were $0.24, higher than analysts' expectations of $0.2.

Comparable store sales fell 1% year-on-year, less than analysts' expected year-on-year growth of 0.3%.

By brand:

Its sales volume was $1 billion 606 million, compared with $1 billion 725 million for the same period last year, mainly due to a decline in physical store customer traffic, a 6% decline compared to that of store sales. Sales of girls' brand Pink were flat compared with the same period last year, and sales of sports underwear increased.

Bath & Body Works sales amounted to $1 billion 60 million, compared with $964 million last year, up 4% over the same period last year.

As of the first half of August 3, 2019, the key financial data of L Brands are as follows:

Net sales amounted to $5 billion 530 million, compared with $5 billion 600 million last year.

Operating profit of $328 million, compared to $383 million a year ago.

Net profit of $77 million 850 thousand, compared to $147 million a year ago, after diluted earnings per share of $0.28, compared to $0.52 per share last year.

Comparable store sales fell 3% year-on-year

By brand:

Its sales volume was $3 billion 117 million, compared with $3 billion 314 million in the same period last year, compared with a 8% decline in store sales.

Bath & Body Works sales amounted to $1 billion 932 million, compared with $1 billion 724 million last year, up 6% over the same period last year.

The group also announced its financial forecast for the third quarter of fiscal 2019 and the whole year.

The third quarter earnings per share were -0.05 US dollars to US $0.05.

In fiscal year 2019, earnings per share ranged from $2.3 to $2.6.