Shares of L Brands (NYSE:LB) have tanked today, down 11.6% as of 3 p.m. EDT, after the company reported second-quarter earnings results. The parent company of brands like Victoria's Secret and PINK, among others, cut its full-year profit forecast -- again.
Revenue in the second quarter grew to $2.98 billion, which translated into net income of $99 million, or $0.36 per share. L Brands also announced that Victoria's Secret PINK, the brand geared toward younger consumers, is getting a new CEO. Denise Landman is retiring at the end of the year and will be replaced by Amy Hauk, who currently serves as a merchandising and product development executive for the company's Bath & Body Works chain.
Comparable sales for Victoria's Secret fell 1%, while comps for Bath & Body Works increased 10%. Gross margin contracted to 35.5%.
While those top- and bottom-line results beat consensus estimates, investors were concerned with L Brands reducing its full-year guidance for the second time this year. The company now expects earnings per share for 2018 to be in the range of $2.45 to $2.70, down from its prior outlook of $2.70 to $3 per share in profit. L Brands had already reduced its forecast in May, down from the $2.95 to $3.25 in earnings per share it predicted at the beginning of the year.
L Brands also issued guidance for the fiscal third quarter, expecting earnings per share between breakeven and $0.05. Analysts were expecting earnings per share of $0.10 in the coming quarter.