The parent company of Victoria's Secret, L Brands Inc.(NYSE:LB), failed to please investors despite market-beating fourth quarter profit, when it warned that first quarter profits could come in lower.
The retailer, in a statement, said that in the fourth quarter, it earned US$664mln, or US$2.33 a share, higher from the US$631mln or US$2.18 a share, recorded a year earlier.
Adjusted for one-time items, the company earned US$2.11 a share, up from US$2.03 a share a year ago.
In the quarter, sales rose to US$4.82bn from US$4.49bn a year ago.
The market consensus was for earnings of US$2.05 a share on sales of US$2.82bn.
The retailer sees full-year 2018 per-share earnings to come in between US$2.95 and US$3.25.
For the first quarter, it sees EPS of between 15 US cents and 20 US cents, reflecting a lower tax rate and an "incremental investment in wages and benefits," mainly for hourly employees, of about US$100mln.
However, this was far below the quarterly 31 US cents a share and full-year earnings of US$3.14 for 2018 expected by analysts.
In premarket, its shares were down 7.76% at US$45.52.