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L Brands’ Sales Miss Estimates

L Brands Inc (NYSE:LB)’s stock has plunged by more than 10% today after the company reported weaker-than-anticipated sales for its first quarter. The beauty products company’s sales rose by 4% to $2.61 billion, missing estimates of $2.67 billion. Same-store sales increased by 3% during the quarter, missing the FactSet consensus of 3.9% growth. In April, sales increased by 2% to $737.5 million, while same-store sales rose by 1%. The company expects adjusted first quarter earnings per share to be in the range of $0.50 to $0.55, below the estimated EPS of $0.58.

As of March 31, Clifford Fox’s Columbus Circle Investors held more than 1.4 million shares of L Brands Inc (NYSE:LB).

Avon Facing Losses

Avon Products, Inc. (NYSE:AVP) is up by more than 3% today despite reporting an unexpected loss per share, excluding items, of $0.07 for the first quarter, missing estimates by $0.09. Revenue declined by 16% year-over-year to $1.31 billion, though this did beat the consensus estimate of $1.29 billion. The cosmetics products company has suffered a decline in sales for four years. The company is busy restructuring its business by getting rid of non-performing operations, cutting its workforce, and investing in its supply chain. Avon sold 80% of its North American business back in March. The company is facing massive difficulties in China and Brazil, two of its primary markets, due to falling demand.

As of March 31, Himanshu H. Shah’s Shah Capital Management had 2.7 million shares of Avon Products, Inc. (NYSE:AVP) in its portfolio.

Fitbit Misses Guidance Estimates

Shares of Fitbit Inc (NYSE:FIT) have crashed by more than 15% after the company posted better-than-expected financial results for the first quarter, but greatly missed guidance estimates. The health and fitness products company reported EPS of $0.10, better than the expected $0.03. Quarterly revenue of $505 million also surpassed the estimates of $443.24 million. For the second quarter, the company expects EPS in the range of $0.08-to-$0.11, a far cry from the consensus of $0.26. Nonetheless, Fitbit’s full 2016 EPS guidance of $1.12-to-$1.24 tops the $1.13 analyst estimates at the mid-point, while its estimated 2016 revenue of $2.5 billion-to-$2.6 billion also dwarfs the consensus estimate of $2.46 billion, so today’s slide could be an overreaction. The company does face tough competition from Apple Inc. (NASDAQ:AAPL) however, which has taken a chunk of Fitbit’s market share with its Apple Watch, of which a follow-up is expected in September.

27 hedge funds in our database were long Fitbit Inc (NYSE:FIT) at the end of last year, up from 20 at the end of September.

Disclosure: None