By Tess Stynes
Limited Brands Inc.'s (LTD) fiscal fourth-quarter earnings rose
14% as the retailer posted stronger revenue and margins.
However, shares fell 1.2% to $44 in after-hours trading as it
provided downbeat guidance for the new fiscal year and the fiscal
first quarter.
For the fiscal year, Limited Brands projected per-share earnings
of $2.92 to $3.12, below recent estimates of analysts polled by
Thomson Reuters recently for $3.24.
For the fiscal first quarter, the company forecast per-share
earnings of 40 cents to 45 cents, lower than analysts' views for 51
cents.
The company, which owns Victoria's Secret and Bath & Body
Works, dominates the intimate-apparel and personal-care markets,
and those segments have helped the retailer post same-store sales
growth and improved margins.
For the period ended Feb. 2, Limited Brands reported a profit of
$411.4 million, or $1.39 a share, up from $359.4 million, or $1.17
a share, a year earlier. Excluding asset write-downs at its La
Senza business and other items, adjusted earnings were $1.76 from
$1.50. The company in November expected $1.73.
Gross margin rose to 44.5% from 43.5%.
The company recently reported that net sales rose 9.7% to $3.86
billion and same-store sales rose 5%, including 3% growth at
Victoria's Secret and 7% at Bath & Body Works.
Write to Tess Stynes at tess.stynes@dowjones.com
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