As Victoria’s Secret's parent company, L Brands (LB), continues its turnaround efforts, the company saw its share price dip nearly 8% on Wednesday with the release of its third-quarter earnings report. The company rebounded on Thursday, with pre-market shares up over 3.5%.

L Brands reported an operating loss of $151.2 million for the quarter compared to $54.4 million in Q3 2018. Net loss for the company was $252 million, up from its net loss of $42.8 million last year.

The company took a non-cash impairment charge of $247.5 million, which it said was based on “certain Victoria’s Secret store and other assets” with another pre-tax charge of $101.2 million for the brand. Another $37.2 million charge was due to ongoing guarantees for the company’s La Senza business, which was sold in Q4 2018 as well as a $20.3 million charge for the closure of its Henri Bendel business.

Overall third-quarter earnings per share were $0.02 compared to $0.16 last year. Adjusted operating income was $96.3 million, down from $155.6 million in 2018 with net adjusted income at $5.7 million, also down from $45 million last year. Net sales for the company were $2.677 billion, with comparable sales decreasing 2% for the quarter.

L Brands guidance for the fourth quarter included an earnings per share of about $2 with full-year adjusted earning per share at about $2.40. The company’s previous guidance set expectations for adjusted earnings per share at $2.30 to $2.60.

L Brands has been working to overhaul its Victoria’s Secret brand, turning towards new labels and re-messaging of its marketing strategy to reach a more diverse group of women. Analysts also think that the company’s successful Bath & Body Works brand has peaked, up 9% for the quarter, but missing its 13% growth from 2018, CNBC reported.

In October, the company laid off 50 headquarter employees whiles the head of its lingerie division, April Holt, stepped down after 16 years. Victoria’s Secret CEO Les Wexner has also been reportedly linked to sex offender Jeffrey Epstein, which continues to haunt the brand.

Shares of L Brands were up 13.21% as of 10:07 a.m. EST on Thursday.

Victoria's Secret Angels
Elsa Hosk became a Victoria’s Secret Angel. Get to know more about her and other the Angels. Pictured: Hosk walking in the Victoria’s Secret Fashion Show in Paris on Nov. 30, 2016. Getty Images
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