L Brands Inc (NYSE:LTD) recently reported its second quarter earnings and discussed the following topics in its earnings conference call.
Matthew McClintock – Barclays: I was just wondering if we could focus a little bit on the market intensification efforts that you are doing in Victoria’s Secret. It sounds like the investments that you are making in customer service are driving improved results there. And then I was wondering if you could actually talk a little bit about, I believe, the test for a similar efforts in Bath & Body Works. I believe that you said that you’ve been testing that for at least a year now and potentially in Chicago?
Sharen Jester Turney – CEO and President, Victoria’s Secret: This is Sharen. We are very pleased with what’s happening with market intensification. We are in six markets today and the performance in these markets continues to be about the Company average. We are very optimistic about the increases we are getting in sales, the increases that we are getting in productivity, and in our customer service score and in the conversions within those markets.
Nicholas Coe – CEO, Bath & Body Works: We have a similar story in terms of what’s going on there. We are little bit behind to take some of the learning’s from the Victoria’s Secret business, but similar results. We are pleased with not only the customer reaction, but also the quality of the sales that are going through and the improved productivity, so all-in-all pretty good.
Barbara Wyckoff – CLSA: I have a question for Sharen. Could you kind of recap the big bra launches last year and what’s your plans are to sort of offset those numbers?
Sharen Jester Turney – CEO and President, Victoria’s Secret: Sure. Today in our plan we are going to have one incremental bra launch that we had this year versus last year. Most of the bra launches that we had last fall were more about re-launching versus new introduction. We have a much bigger balance of new introductions for this fall season. We feel very confident about what we have seen in our early retest and within our testing. So, I’m very optimistic, Barbara, about those bra launches.