Shares in L Brands, the owner of lingerie brand Victoria’s Secret, surged despite sales falling as a separate division beat analyst estimates.
Victoria's Secret like-for-like sales fell 13 per cent in March, after falling 16 per cent in Feburary, the company reported.
Overall L Brands sales decreased seven per cent to $951m (£763m) for the five weeks to 1 April, compared to net sales of $1.03bn in the same month last year.
Like-for-like sales for the period fell 10 per cent, although they were partly affected by Easter falling later than usual.
L Brands has struggled over the past two years, with shares falling by more than 50 per cent since peaking in December 2015. However, they rallied by more than 10 per cent after the results as sales declined less than expected.
The company said exiting the swimwear and apparel categories had a negative impact of 10 percentage points to Victoria’s Secret like-for-like sales. Victoria’s Secret is the company’s top earner.
L Brands said its efforts to streamline the Victoria’s Secret brand and refocus on its core “will continue to put pressure on results in 2017” but it also guided that “we are confident that they are providing the platform for accelerated future growth”.
Meanwhile its Bath & Body Works brand “delivered solid results”, the company said, but overall mall traffic declines still increased in December.