Limited Brands Inc.'s (LTD) fiscal second-quarter profit fell
38% on fewer one-time gains and slightly weaker sales.
But the company's adjusted earnings and sales edged out
expectations, and Limited raised its full-year outlook, now seeing
per-share earnings of $2.73 to $2.88 from its previous outlook of
$2.63 to $2.83. For the current quarter, Limited expects per-share
earnings of 15 cents to 20 cents, above the 24-cent estimate of
analysts polled by Thomson Reuters.
The parent of Victoria's Secret and Bath & Body Works
commands a dominant position in the intimate-apparel and beauty and
personal-care segments, which has helped the retailer post surging
same-store sales growth and improved margins. In the latest period,
same-store sales grew 8% and gross margin widened to 39.3% from
36.7%.
For the quarter ended July 28, the company posted a profit of
$143.6 million, or 49 cents a share, down from $231.2 million, or
73 cents a share, a year earlier.
The latest period included a per-share charge of a penny related
to La Senza store closings, while the year-earlier quarter included
a net gain of 24 cents related in part to the disposal of Express
Inc. (EXPR) shares. Excluding items, adjusted earnings rose to 50
cents from 48 cents a share.
Earlier this month, the company said it expected to report
adjusted per-share earnings of 46 cents to 48 cents.
Sales fell 2.4% to $2.4 billion, while analysts polled by
Thomson Reuters expected sales of $2.38 billion.
Limited shares fell 0.7% to $48.65 in after-hours trading
Wednesday. Through the close, the stock was up 21% so far this
year.
Write to Kristin Jones at kristin.jones@dowjones.com
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