L Brands announces store closures, withdraws Q1 outlook

To help limit the spread of the coronavirus, L Brands has decided to temporarily close all Bath & Body Works, Victoria’s Secret and Pink stores in the United States and Canada, effective March 17 through March 29, 2020. Additionally, the company said in a statement, home office associates have been asked to work from home if possible and all employees will continue to receive pay and benefits during the temporary closure period.

Due to the heightened uncertainty relating to the potential impacts of COVID-19 on the company’s business operations, including its duration and its impact on overall demand for merchandise, L Brand is also withdrawing the first quarter 2020 earnings guidance issued on February 26, 2020, where it expected adjusted loss per share of about 5 cents.

As a caution and proactive measure, on March 16, 2020, the L Brand decided to draw down 950 million dollars from its Revolving Credit Facility. After the drawdown, the company said, it has more than 2 billion dollars in cash.

Picture:L Brands resources