L Brands’ board approved a plan to separate the company into two independent, public companies: Bath & Body Works and Victoria’s Secret. This would lead to a spin-off its Victoria’s Secret brand rather than a sale. The spin-offs are expected to be completed by August. “In the last ten months, we have made significant progress in the turnaround of the Victoria’s Secret business,” Chair of the Board, Sarah Nash said. With this, the company also released its preliminary Q1 results with the actual results to be announced on May 19. L Brands expects total operating income of ~$570mn, including $380mn at Bath & Body Works and approximately $245mn at Victoria’s Secret. Q1 net sales ending May 1, 2021 were reported at $3.024bn, compared to net sales of $1.654bn in the prior year – Bath & Body Works saw $1.469bn in net sales and Victoria’s Secret $1.554bn registering YoY increases of 93% and 74% respectively.

L Brands’ bonds were trading lower – its 6.75% 2036s were down 1.1 to 120.4, yielding 4.4% and its 7.5% 2029s were down 0.6 to 115.9, yielding 3.2%

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