Benzinga | Jul 14, 2021 07:20AM EDT

L Brands Q2-To-Date Sales Grow 71%; Outlook Raised

* L Brands, Inc (NYSE:LB) reported second-quarter-to-date sales growth of 71.7% year-on-year to $2.35 billion.

* Bath & Body Works sales for nine weeks ended July 3, 2021, increased 66.6% Y/Y to $1.24 billion.

* Victoria's Secret sales were $1.11 billion, a 77.7% growth Y/Y.

* The company also announced go-forward capital structure for the standalone Bath & Body Works business, including authorization of $1.5 billion share repurchase program and continuation of current annual dividend of $0.60 per share.

* Outlook: L Brands has raised its Q2 EPS outlook to $1.20-$1.30 from $0.80-$1.00, versus consensus of $1.02.

* The raised outlook is driven by higher than forecasted merchandise margin rates, as strong customer response to merchandise assortments and disciplined inventory management enabled a reduction in promotional activity.

* L Brands sees $400 million operating income for the Bath & Body Works segment and more than $200 million for Victoria's Secret segment.

* L Brands plans to report second-quarter earnings after the close of the market on August 18, 2021.

* Price action: LB shares closed lower by 3.19% at $74.12 on Tuesday.