Limited Brands Inc. (LTD) raised its earnings guidance for the
fiscal fourth quarter as its holiday sales, although not quite what
analysts had hoped for, nonetheless kept the quarter's margins and
sales above what the company had anticipated.
The parent of Victoria's Secret and Bath & Body Works now
expects to post a profit between 92 cents and 97 cents a share in
the current quarter, compared with November's guidance for 71 cents
to 86 cents.
In November, Limited third-quarter profit more than tripled on a
tax gain, but the retailer surprised Wall Street with earnings even
after that gain was stripped out. Those strong results and a raised
outlook for the year suggested that consumers were becoming less
wary of spending on Limited's highly discretionary lingerie and
beauty products.
However, the company said Thursday its same-store sales in
December declined 2%, more than analysts had anticipated but in
line with the company's guidance. Chairman and Chief Executive Les
Wexner said Limited was very pleased with the holiday outcome. "We
managed inventory and expenses conservatively and focused on
execution and speed to maximize sales and margin," he said.
Limited shares closed Wednesday at $19.07 and weren't active
premarket.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com