L Brands (NYSE: LB) the parent of Victoria's Secret and Bath & Body Works, on Wednesday lowered its profit outlook, which overshadowed quarterly earnings and revenue that topped analysts' expectations.
The company said it now expects full-year earnings per share between $2.45 and $2.70, down from its previous forecast for earnings per share between $2.70 and $3.
For the third quarter, L Brands said it expects earnings per share of no more than five cents. Analysts had estimated third-quarter earnings per share of 16 cents.
The Columbus, Ohio-based company reported fiscal second-quarter net income of $99 million, or 36 cents per share, down from $138.9 million, or 48 cents per share, a year earlier.
Excluding items, L Brands earned 36 cents per share, better than the 34 cents per share expected by analysts
The company earlier this month reported net sales of $2.98 billion for second quarter, up from $2.76 billion the same period a year prior.
Comparable sales at Victoria's Secret declined 1% in the second quarter, while they grew 10% for Bath & Body Works. On a whole, comparable sales grew 3%.
The lingerie player has struggled under the pressure of new competition from millennial-focused brands like American Eagle's (NYSE: AEO) Aerie division, Adore Me and ThirdLove.
Those brands have the products that experts say today's consumer wants: trendy, comfortable bralettes over the push-up bras for which Victoria's Secret has become known.
Shares began Thursday down $2.19, or 6.9%, to $29.70
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