(Bloomberg) -- L Brands Inc., which owns the Victoria’s Secret and Bath & Body Works chains, slashed its full-year profit outlook -- sending shares sliding in late trading.
The company now sees full-year profit of $2.70 to $3 a share, down from its earlier estimate of $2.95 to $3.25. The midpoint of the new forecast also fell short of the $2.98 that was the average of analysts estimates.
L Brands has been struggling to improve sales at its Victoria’s Secret chain, which remains the largest lingerie specialty player but faces increasing competition and changing customer sensibilities. The retailer has been slow to follow the more natural bra trends embraced by rivals like American Eagle Outfitters Inc.’s Aerie. Victoria’s Secret has also been plagued by discounts as it grapples with a buildup of inventory.
The lowered profit forecast stoked investors’ fears that the trends won’t reverse anytime soon. Earlier this year, the company reduced Chief Executive Officer Les Wexner’s pay.
L Brands shares fell as much as 7.2 percent to $31.60 in extended trading on Wednesday. The stock had plunged 43 percent this year through the close of trading.
©2018 Bloomberg L.P.