Shoppers stand in line waiting for a Victoria & # 39; s Secret store to open on Black Friday at Tysons Corner Center in Tysons, Virginia on November 27, 2020.
Hannah McKay | Reuters
Victoria's secret parent company L Brands said Thursday that sales in the same store increased 5% during the holiday season, compared to a 3% decrease a year ago when shoppers bought more lounge clothes, hand soap and candles before the New Year .
CEO Andrew Meslow said the company's vacation results "far exceeded our original expectations" as efforts to cut back on promotions and sell more products at full price paid off.
The retailer, which also owns Bath & Body Works, is now calling for fourth-quarter earnings between $ 2.70 and $ 2.80 per share. According to refinitive data, analysts were expecting $ 1.96.
L Brands is targeting fourth quarter sales of $ 3.84 billion. Analysts had asked for $ 4.74 billion.
The company's shares rose more than 5% late this morning, after rising more than 150% in the past 12 months.
For the nine-week period ended January 2, L Brands posted net sales of $ 3.84 billion, a decrease of 1.8% from $ 3.91 billion for the same period last year.
Inside Victoria & # 39; s Secret, sales at the same store, where sales are tracked both online and in stores that have been open for at least 12 months, fell 9% during the holiday season, with the metric in brick and mortar stores traffic declined in large part by 23% during the Covid pandemic. The average price for an item at Victoria & # 39; s Secret has risen.
Bath & Body Works' sales in the same store increased 17%, including a 5% increase in stores.
"Bath & Body Works continues to deliver record results and shows the strength of the brand," Meslow said in a statement.
"The turnaround at Victoria & # 39; s Secret is also gaining traction thanks to an improved range of goods and targeted implementation of retail fundamentals and our profit improvement plan," he added.
L Brands is expected to report fourth quarter earnings on February 24th.
You can find the full L Brands holiday results here.