L Brands swings to £37.84 million of net loss in the fiscal second quarter

L Brands (NYSE: LB) said on Wednesday that its revenue and profit in the fiscal second quarter came in stronger than expected. On a year over year basis, its sales were down by 20% due to the Coronavirus pandemic that pushed its stores into temporarily shutting down in recent months.

Adjusted for non-recurring items, L Brands earned 19.07 pence per share in the second quarter as compared to 18.31 pence in the same quarter last year. The figure was in sharp contrast with a per-share loss of 32.04 that analysts had predicted.

L Brands is currently 65% up year to date in the stock market

Excluding adjustments, however, the American company swung to £37.84 million of net loss in the recent quarter versus £28.69 million of net profit in the comparable quarter of 2019. Learn more about profit and loss statements.

According to the fashion retailer, its revenue registered at £1.77 billion in Q2 versus the year-ago figure of £2.21 billion. But it topped the experts’ forecast of £1.69 billion. L Brands is currently committed to separating its Bath & Body Works segment from Victoria’s Secret.

Shares of the company were reported more than 2% up in after-hours trading on Wednesday. On a year to date basis, L brands is currently 65% up in the stock market. It has recovered sharply in the past five months from a low of £7.0 per share in March due to COVID-19 driven store closures, to £22.20 per share at the time of writing. The fashion retailer currently boasts a market cap of £6.03 billion.

Bath & Body Works saw a 13% growth in Q2 sales

L Brands said that its Bath & Body Works brand saw a 13% growth in Q2 sales to £920 million in Canada and the United States. The increase was attributed to a higher demand for scented soaps and hand sanitizers amidst COVID-19. Sales from Victoria’s Secret lingerie division, however, tumbled 39% in the region in the second quarter.

In terms of same-store sales, the Columbus-headquartered company reported a 63% increase versus 18% expected. Comparable sales were 38% up at Victoria’s Secret and an unprecedented 123% up at Bath & Body Works.

Citing Coronavirus uncertainty, L Brands refrained from giving its guidance for the full year on Wednesday. In an announcement last month, it expressed plans of slashing its workforce by 15% to secure £305.15 million in annual savings. L Brands had £1.98 billion in cash as of the end of Q2.