NEW YORK, NY / ACCESSWIRE / November 17, 2017 / L Brands closed down modestly in the red yesterday, rebounding from bigger losses in pre-market trading when the company, which is behind Victoria's Secret and Bath & Body Works, announced its third-quarter earnings. Traders were concerned with Victoria's Secret's comparable sales drop. Shares of Best Buy also closed down after worse than expected third-quarter earnings results.

RDI Initiates Coverage on:

L Brands, Inc.
https://rdinvesting.com/news/?ticker=LB

Best Buy Co., Inc.
https://rdinvesting.com/news/?ticker=BBY

L Brands, Inc. shares closed down a modest 0.28% on Thursday on nearly 6.4 million shares traded. Shares were down as much as 6% in pre-market trading when the company released its third-quarter earnings results that had traders worrying about its Victoria's Secret business unit. Comparable-sales at Victoria's Secret fell 4% in the third quarter. It was an increase in comparable sales at Bath & Body Works that was able to offset the disappointment of Victoria's Secret. Jefferies analyst Randal J. Konik remarked, "We believe fundamental issues remain at Victoria's Secret ... and L Brands can no longer rely on this division as a source of stability." As for the third quarter's numbers, L Brand fared pretty well. EPS of 30 cents was in line with what Wall Street had expected while revenues surpassed the consensus mark for the first time in the last five quarters at $2,617.8 million. Analysts had been waiting for $2,607 million.

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Best Buy Co., Inc. shares closed down 3.58% on Thursday with around 18.3 million shares traded. The retailer's shares started to head south after it reported worse than expected fiscal third-quarter results. It was especially worrisome for traders because Best Buy missed the Zack's Consensus Estimate after beating it 19 quarters in a row previously. For the third quarter EPS at 78 cents was behind the 79 cents that Zack's had expected. Revenues at $9320 million was behind the consensus mark of $9,353 million. CEO Hubert Joly remarked, "Our Q3 results include the negative impact of two significant factors. First, despite our moderate expectations for mobile phone launches in the quarter, revenue in the mobile category was materially lower than expected. This was due to the fact that a major new phone did not launch until November, which is in our Q4. The related revenue impact in the quarter was more than $100 million. Second, like most retailers, we felt the impact of the natural disasters in south Texas, Florida, Puerto Rico and Mexico. We estimate the loss of revenue impacted our Enterprise comparable sales by 15 to 20 basis points, and that the related costs negatively impacted our EPS by approximately $0.03."

Access RDI's Best Buy Co., Inc. Research Report at:
https://rdinvesting.com/news/?ticker=BBY

Our Actionable Research on L Brands, Inc. (NYSE: LB) and Best Buy Co., Inc. (NYSE: BBY) can be downloaded free of charge at Research Driven Investing.

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