COLUMBUS, Ohio, Feb. 27, 2013 /PRNewswire/ -- Limited
Brands, Inc. (NYSE: LTD) today reported 2012 fourth quarter and
full-year results.
(Logo: http://photos.prnewswire.com/prnh/20020520/CLM001LOGO
)
Fourth Quarter Results
Adjusted earnings per share
for the 14-week fourth quarter ended Feb. 2,
2013, which exclude certain significant items as detailed
below, were $1.76 compared to
$1.50 for the 13-week fourth quarter
ended Jan. 28, 2012. Fourth
quarter adjusted operating income was $907.8
million compared to $786.5
million last year, and adjusted net income was $519.2 million compared to $459.2 million last year.
Including the significant items below, reported fourth quarter
earnings per share were $1.39
compared to $1.17 last year;
operating income was $787.8 million
compared to $641.1 million last year;
and net income was $411.4 million
compared to $359.4 million last
year.
Significant items are as follows:
In 2012 (totaling to a charge of $0.37 per share):
- A pre-tax, non-cash charge of $93.2
million, or $0.31 per share,
related to intangible asset impairment at La Senza; and
- A pre-tax, non-cash charge of $26.9
million, or $0.06 per share,
related to store fixed asset impairment at Henri Bendel.
In 2011 (totaling to a charge of $0.33 per share):
- A pre-tax gain of $110.8 million,
or $0.32 cents per share, related to
the sale of our third party apparel sourcing business;
- A pre-tax, principally non-cash charge of $256.1 million, or $0.74 per share, related to intangible asset
impairment and restructuring charges, including store closures, at
La Senza; and
- A tax benefit of $28.4 million,
or $0.09 cents per share, related to
certain discrete tax matters.
Comparable store sales for the 14-week fourth quarter ended
Feb. 2, 2013, increased 5% compared
to the 14 weeks ended Feb. 4,
2012. Net sales were $3.856
billion for the 14-week fourth quarter ended Feb. 2, 2013, compared to $3.515 billion for the 13 weeks ended
Jan. 28, 2012. The fifth week
in January 2013 represented
approximately $125 million in sales.
Full-Year Results
Adjusted earnings per share for the
53-week year ended Feb. 2, 2013,
which exclude certain significant items, were $2.92 compared to $2.60 for the year ended Jan. 28, 2012. Adjusted operating income
was $1.707 billion in 2012 compared
to $1.546 billion in 2011, and
adjusted net income was $866.7
million compared to $817.3
million in 2011.
Including significant items, reported 2012 53-week full-year
earnings per share were $2.54
compared to $2.70 for the 52-week
2011; operating income was $1.573
billion compared to $1.238
billion in 2011; and net income was $753.0 million compared to $850.1 million in 2011.
At the conclusion of this press release is a reconciliation of
reported to adjusted results, including a description of the
significant items.
The company reported a comparable stores sales increase of 6%
for the 53-week year ended Feb. 2,
2013, compared to the 53 weeks ended Feb. 4, 2012. Net sales were $10.459 billion for the 53-week year ended
Feb. 2, 2013, compared to
$10.364 billion for the 52 weeks
ended Jan. 28, 2012.
Fourth quarter 2011 and 2011 full-year sales included
$13.1 million and $702.4 million attributable to the third party
apparel sourcing business, which was sold in November 2011.
2013 Outlook
The company currently expects 2013
full-year earnings per share to be between $2.92 and $3.12, including earnings per share
between $0.40 and $0.45 in the first
quarter.
The company expects to report a February comparable store sales
increase in line with its previous guidance for up low single digit
comps.
Earnings Call and Additional Information
Limited
Brands will conduct its fourth quarter earnings call at
9 a.m. Eastern on Feb. 28. To
listen, call 1-866-583-6618 (international dial-in number:
1-937-200-3978). For an audio replay, call 1-866-NEWS-LTD
(international replay number: 1-706-902-3452) or log onto
www.Limitedbrands.com. Additional fourth quarter and
full-year financial information is also available at
www.Limitedbrands.com.
ABOUT LIMITED BRANDS:
Limited Brands, through
Victoria's Secret, Pink, Bath
& Body Works, La Senza and Henri Bendel, is an international
company. The company operates 2,619 specialty stores in
the United States and its brands
are sold in more than 700 company-operated and franchised
additional locations world-wide. The company's products are
also available online at www.VictoriasSecret.com,
www.BathandBodyWorks.com, www.HenriBendel.com and
www.LaSenza.com.
Limited Brands b-roll footage of stores is available through our
online newsroom.
Safe Harbor Statement Under the Private Securities Litigation
Reform Act of 1995
Limited Brands, Inc. cautions that any
forward-looking statements (as such term is defined in the Private
Securities Litigation Reform Act of 1995) contained in this press
release or the fourth quarter earnings call involve risks and
uncertainties and are subject to change based on various factors,
many of which are beyond our control. Accordingly, our future
performance and financial results may differ materially from those
expressed or implied in any such forward-looking statements.
Words such as "estimate," "project," "plan," "believe," "expect,"
"anticipate," "intend," "planned," "potential" and any similar
expressions may identify forward-looking statements. Risks
associated with the following factors, among others, in some cases
have affected and in the future could affect our financial
performance and actual results and could cause actual results to
differ materially from those expressed or implied in any
forward-looking statements included in this press release or the
fourth quarter earnings call:
- general economic conditions, consumer confidence, consumer
spending patterns and market disruptions including severe weather
conditions, natural disasters, health hazards, terrorist
activities, financial crises, political crises or other major
events, or the prospect of these events;
- the seasonality of our business;
- the dependence on a high volume of mall traffic and the
possible lack of availability of suitable store locations on
appropriate terms;
- our ability to grow through new store openings and existing
store remodels and expansions;
- our ability to successfully expand into international markets
and related risks;
- our independent licensees and franchisees;
- our direct channel business;
- our failure to protect our reputation and our brand
images;
- our failure to protect our trade names, trademarks and
patents;
- the highly competitive nature of the retail industry generally
and the segments in which we operate particularly;
- consumer acceptance of our products and our ability to keep up
with fashion trends, develop new merchandise and launch new product
lines successfully;
- our reliance on foreign sources of production, including risks
related to:
- political instability;
- duties, taxes and other charges on imports;
- legal and regulatory matters;
- volatility in currency exchange rates;
- local business practices and political issues;
- potential delays or disruptions in shipping and related pricing
impacts;
- the disruption of imports by labor disputes; and
- changing expectations regarding product safety due to new
legislation;
- stock price volatility;
- our failure to maintain our credit rating;
- our ability to service our debt;
- our ability to retain key personnel;
- our ability to attract, develop and retain qualified employees
and manage labor costs;
- the inability of our manufacturers to deliver products in a
timely manner and meet quality standards;
- fluctuations in product input costs;
- fluctuations in energy costs;
- increases in the costs of mailing, paper and printing;
- claims arising from our self-insurance;
- our ability to implement and maintain information technology
systems;
- our failure to comply with regulatory requirements;
- tax matters; and
- legal and compliance matters.
We are not under any obligation and do not intend to make
publicly available any update or other revisions to any of the
forward-looking statements contained in this press release or the
fourth quarter earnings call to reflect circumstances existing
after the date of this press release or to reflect the occurrence
of future events even if experience or future events make it clear
that any expected results expressed or implied by those
forward-looking statements will not be realized. Additional
information regarding these and other factors can be found in "Item
1A. Risk Factors" in our 2011 Annual Report on Form 10-K.
|
LIMITED
BRANDS, INC. AND SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF
INCOME
|
FOURTEEN WEEKS ENDED FEBRUARY 2, 2013 AND THIRTEEN
WEEKS ENDED JANUARY 28, 2012
|
(Unaudited)
|
(In
thousands except per share amounts)
|
|
|
|
|
|
|
|
|
2012
|
|
2011
|
|
Net
Sales
|
$
3,855,583
|
|
$
3,515,426
|
|
Cost of
Goods Sold, Buying and Occupancy
|
(2,139,298)
|
|
(1,987,769)
|
|
Gross
Profit
|
1,716,285
|
|
1,527,657
|
|
General,
Administrative and Store Operating Expenses
|
(835,327)
|
|
(765,460)
|
|
Impairment
of Goodwill and Other Intangible Assets
|
|
(93,201)
|
|
(231,862)
|
|
Gain on
Divestiture of Third-Party Sourcing Business
|
-
|
|
110,801
|
|
Operating
Income
|
787,757
|
|
641,136
|
|
Interest
Expense
|
(82,254)
|
|
(63,487)
|
|
Other
Income
|
4,907
|
|
2,289
|
|
|
|
|
|
|
|
Income
Before Income Taxes
|
710,410
|
|
579,938
|
|
Provision
for Income Taxes
|
299,014
|
|
220,497
|
|
|
|
|
|
|
|
Net
Income
|
$
411,396
|
|
$
359,441
|
|
|
|
|
|
|
|
Net Income
Per Diluted Share
|
$
1.39
|
|
$
1.17
|
|
|
|
|
|
|
|
Weighted
Average Shares Outstanding
|
295,423
|
|
306,042
|
|
|
|
|
|
|
|
|
LIMITED
BRANDS, INC. AND SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF
INCOME
|
FOURTEEN WEEKS ENDED FEBRUARY 2, 2013 AND THIRTEEN
WEEKS ENDED JANUARY 28, 2012
|
(Unaudited)
|
(In
thousands except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
Adjustments
|
|
Adjusted
|
|
Reported
|
|
Adjustments
|
|
Adjusted
|
Net
Sales
|
$
3,855,583
|
|
$
-
|
|
$
3,855,583
|
|
$
3,515,426
|
|
$
-
|
|
$
3,515,426
|
Cost of
Goods Sold,
|
|
|
|
|
|
|
|
|
|
|
|
|
Buying
& Occupancy
|
(2,139,298)
|
|
26,881
|
|
(2,112,417)
|
|
(1,987,769)
|
|
16,985
|
|
(1,970,784)
|
Gross
Profit
|
1,716,285
|
|
26,881
|
|
1,743,166
|
|
1,527,657
|
|
16,985
|
|
1,544,642
|
General,
Administrative and
|
|
|
|
|
|
|
|
|
|
|
|
|
Store
Operating Expenses
|
(835,327)
|
|
|
|
(835,327)
|
|
(765,460)
|
|
7,357
|
|
(758,103)
|
Impairment
of Goodwill and Other Intangible Assets
|
(93,201)
|
|
93,201
|
|
-
|
|
(231,862)
|
|
231,862
|
|
-
|
Gain on
Divestiture of Third-Party Sourcing Business
|
-
|
|
|
|
-
|
|
110,801
|
|
(110,801)
|
|
-
|
Operating
Income
|
787,757
|
|
120,082
|
|
907,839
|
|
641,136
|
|
145,403
|
|
786,539
|
Interest
Expense
|
(82,254)
|
|
-
|
|
(82,254)
|
|
(63,487)
|
|
-
|
|
(63,487)
|
Other
Income
|
4,907
|
|
|
|
4,907
|
|
2,289
|
|
|
|
2,289
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Before Income Taxes
|
710,410
|
|
120,082
|
|
830,492
|
|
579,938
|
|
145,403
|
|
725,341
|
Provision
for Income Taxes
|
299,014
|
|
12,247
|
|
311,261
|
|
220,497
|
|
45,636
|
|
266,133
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
$
411,396
|
|
$
107,835
|
|
$
519,231
|
|
$
359,441
|
|
$
99,767
|
|
$
459,208
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
Per Diluted Share
|
$
1.39
|
|
|
|
$
1.76
|
|
$
1.17
|
|
|
|
$
1.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
Average Shares Outstanding
|
295,423
|
|
|
|
295,423
|
|
306,042
|
|
|
|
306,042
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes
to Consolidated Statements of Income and Reconciliation of Adjusted
Results for additional information.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIMITED
BRANDS, INC. AND SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF INCOME
|
FIFTY-THREE WEEKS ENDED FEBRUARY 2, 2013 AND
FIFTY-TWO WEEKS ENDED JANUARY 28, 2012
|
(Unaudited)
|
(In
thousands except per share amounts)
|
|
|
|
|
|
|
|
2012
|
|
2011
|
Net
Sales
|
$
10,458,651
|
|
$
10,363,998
|
Cost of
Goods Sold, Buying and Occupancy
|
(6,072,804)
|
|
(6,307,237)
|
Gross
Profit
|
4,385,847
|
|
4,056,761
|
General,
Administrative and Store Operating Expenses
|
(2,719,377)
|
|
(2,698,107)
|
Impairment
of Goodwill and Other Intangible Assets
|
(93,201)
|
|
(231,862)
|
Gain on
Divestiture of Third-Party Sourcing Business
|
|
-
|
|
110,801
|
Operating
Income
|
1,573,269
|
|
1,237,593
|
Interest
Expense
|
(316,727)
|
|
(246,274)
|
Other
Income
|
23,948
|
|
235,157
|
|
|
|
|
|
Income
Before Income Taxes
|
1,280,490
|
|
1,226,476
|
Provision
for Income Taxes
|
527,528
|
|
376,394
|
|
|
|
|
|
Net
Income
|
$
752,962
|
|
$
850,082
|
|
|
|
|
|
Net Income
Per Diluted Share
|
$
2.54
|
|
$
2.70
|
|
|
|
|
|
Weighted
Average Shares Outstanding
|
296,769
|
|
314,311
|
|
|
|
|
|
|
LIMITED
BRANDS, INC. AND SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF INCOME
|
FIFTY-THREE WEEKS ENDED FEBRUARY 2, 2013 AND
FIFTY-TWO WEEKS ENDED JANUARY 28, 2012
|
(Unaudited)
|
(In
thousands except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
Adjustments
|
|
Adjusted
|
|
Reported
|
|
Adjustments
|
|
Adjusted
|
Net
Sales
|
$
10,458,651
|
|
$
-
|
|
$
10,458,651
|
|
$
10,363,998
|
|
$
-
|
|
$
10,363,998
|
Cost of
Goods Sold,
|
|
|
|
|
|
|
|
|
|
|
|
|
Buying
& Occupancy
|
(6,072,804)
|
|
40,118
|
|
(6,032,686)
|
|
(6,307,237)
|
|
16,985
|
|
(6,290,252)
|
Gross
Profit
|
4,385,847
|
|
40,118
|
|
4,425,965
|
|
4,056,761
|
|
16,985
|
|
4,073,746
|
General,
Administrative and
|
|
|
|
|
|
|
|
|
|
|
|
|
Store
Operating Expenses
|
(2,719,377)
|
|
800
|
|
(2,718,577)
|
|
(2,698,107)
|
|
170,785
|
|
(2,527,322)
|
Impairment
of Goodwill and Other Intangible Assets
|
(93,201)
|
|
93,201
|
|
-
|
|
(231,862)
|
|
231,862
|
|
-
|
Gain on
Divestiture of Third-Party Sourcing Business
|
-
|
|
|
|
-
|
|
110,801
|
|
(110,801)
|
|
-
|
Operating
Income
|
1,573,269
|
|
134,119
|
|
1,707,388
|
|
1,237,593
|
|
308,831
|
|
1,546,424
|
Interest
Expense
|
(316,727)
|
|
-
|
|
(316,727)
|
|
(246,274)
|
|
-
|
|
(246,274)
|
Other
Income
|
23,948
|
|
(12,745)
|
|
11,203
|
|
235,157
|
|
(233,478)
|
|
1,679
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Before Income Taxes
|
1,280,490
|
|
121,374
|
|
1,401,864
|
|
1,226,476
|
|
75,353
|
|
1,301,829
|
Provision
for Income Taxes
|
527,528
|
|
7,659
|
|
535,187
|
|
376,394
|
|
108,092
|
|
484,486
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
$
752,962
|
|
$
113,715
|
|
$
866,677
|
|
$
850,082
|
|
$
(32,739)
|
|
$
817,343
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
Per Diluted Share
|
$
2.54
|
|
|
|
$
2.92
|
|
$
2.70
|
|
|
|
$
2.60
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
Average Shares Outstanding
|
296,769
|
|
|
|
296,769
|
|
314,311
|
|
|
|
314,311
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes
to Consolidated Statements of Income and Reconciliation of Adjusted
Results for additional information.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIMITED BRANDS, INC. AND
SUBSIDIARIES
NOTES TO CONSOLIDATED STATEMENTS OF INCOME
AND
RECONCILIATION OF ADJUSTED RESULTS
(Unaudited)
The "Adjusted Results" provided in the attached unaudited
Consolidated Statements of Income and Reconciliation of Adjusted
Results are non-GAAP financial measures and reflect the
following:
Fiscal 2012
In the fourth quarter of 2012, adjusted results exclude the
following:
- A $93.2 million pre-tax charge
($91.2 million net of tax) related to
the impairment of La Senza goodwill and other intangible
assets.
- A $26.9 million pre-tax charge
($16.6 million net of tax), included
in buying and occupancy expenses, related to the impairment of
Henri Bendel store fixed assets.
In the third quarter of 2012, adjusted results exclude the
following:
- $10.4 million ($10.4 million net of tax) of store closure costs
at La Senza.
- A $12.7 million pre-tax gain
($8.2 million net of tax), included
in other income and expense, from $13.4
million of cash distributions related to the company's
Easton investments.
In the second quarter of 2012, adjusted results exclude the
following:
- $3.6 million ($3.6 million net of tax) of store closure costs
at La Senza.
In the first quarter of 2012, there were no adjustments to
results.
Fiscal 2011
In the fourth quarter of 2011, adjusted results exclude the
following:
- A $231.8 million pre-tax charge
($203.0 million net of tax) related
to the impairment of La Senza goodwill and other intangible
assets.
- A $110.8 million pre-tax gain
($99.3 million net of tax) related to
the sale of 51% of our third-party sourcing business to Sycamore
Partners.
- $24.3 million ($24.3 million net of tax) of restructuring
expenses at La Senza.
- A $28.4 million tax benefit
related to certain discrete income tax matters.
In the third quarter of 2011, adjusted results exclude the
following:
- A $16.7 million tax benefit
related to the favorable resolution of certain discrete income tax
matters.
In the second quarter of 2011, adjusted results exclude the
following:
- A $147.1 million non-taxable
gain, included in other income and expense, and associated pre-tax
expense of $113.4 million, included
in general, administrative and store operating expenses, associated
with our charitable contribution of Express, Inc. common stock to
The Limited Brands Foundation.
In the first quarter of 2011, adjusted results exclude the
following:
- An $86.4 million pre-tax gain
($55.6 million net of tax), included
in other income and expense, related to the sale of shares of
Express, Inc. common stock.
- A $50.0 million pre-tax expense
($31.2 million net of tax), included
in general, administrative and store operating expenses, related to
a pledge to The Limited Brands Foundation.
- An $11.0 million tax benefit
primarily related to the favorable resolution of certain discrete
income tax matters.
The Unaudited Adjusted Consolidated Statements of Income should
not be construed as an alternative to the reported results
determined in accordance with generally accepted accounting
principles. Further, the Company's definition of adjusted
income information may differ from similarly titled measures used
by other companies. While it is not possible to predict
future results, management believes the adjusted information is
useful for the assessment of the ongoing operations of the Company.
The Unaudited Adjusted Consolidated Statements of Income should be
read in conjunction with the Company's historical financial
statements and notes thereto contained in the Company's quarterly
reports on Form 10-Q and annual report on Form 10-K.
SOURCE Limited Brands, Inc.