What happened

Shares of Victoria's Secret-parent L Brands, Inc. (NYSE:LB) were getting shredded today after the retailer turned in disappointing guidance in its second-quarter earnings report. The stock was down 9.2% at 12:42 p.m. EDT.

L Brands' results were actually better than expectations, but weak guidance sent the stock heading to six-year lows.

The entrance to a Victoria's Secret store

Image source: L Brands.

So what

Management said overall comparable sales fell 8%, though they would have been down 2% adjusting for the exit from the swim and apparel business at Victoria's Secret. At Victoria's Secret, comps sunk 14%, which would have been 5% after the adjustment. Both results were below the company's guidance.

Overall revenue declined 4.6% to $2.76 billion, meeting expectations. On the bottom line, adjusted earnings per share declined from $0.70 to $0.48, which topped the consensus of $0.44.

Demand for Victoria's Secret products seems to be falling as consumers visit local malls less frequently -- and because of competition from chains like American Eagle Outfitters' Aerie, which have been more on trend with the rise of bralettes. Performance at secondary chain Bath & Body Works was stronger, as comps were up 6%.

Now what

Due to the weak comparable-sales results, L Brands lowered its full-year earnings-per-share guidance from a range of $3.10 to $3.40 down to a range of $3.00 to $3.20, and also called for quarterly earnings of just $0.25 to $0.30 per share. Analysts had expected EPS of $3.23 for the year and $0.36 for the current quarter.

Clearly any potential turnaround is not yet materializing, as the stock is now down 46%, following a weak performance last year. While shares may look cheap, I'd avoid the stock until earnings and comps stabilize.

Jeremy Bowman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.