DOW JONES NEWSWIRES
Limited Brands Inc. (LTD) fiscal second-quarter earnings
increased 29% on continued improvement in both sales and margin, as
the specialty retailer raised its full-year profit guidance.
Shares in the parent of Victoria's Secret and Bath & Body
Works were up 3.4% at $35.50 after hours. Through the close, the
stock had risen 12% so far this year, while the wider market was
negative. Shares hit their highest level ever in May.
Limited raised its full-year earnings outlook to $2.35 to $2.50
a share, up from May's outlook of $2.25 to $2.45 a share. Limited
also predicted fiscal third-quarter earnings of 17 cents to 22
cents a share, the top end just touching the 22-cent consensus
estimate of analysts polled by Thomson Reuters.
The company has reported quarterly profit growth for two years
straight now, lately supported by a strategy to increase
regular-priced selling by reining in promotions and clearances
while trimming inventory.
"Our focus on managing inventory and expenses conservatively and
staying agile yielded more full-priced selling," Chairman and Chief
Executive Leslie H. Wexner said Wednesday of the latest
results.
For the quarter ended July 30, the company posted a profit of
$231.2 million, or 73 cents a share, from $178.7 million, or 54
cents a share, a year earlier. Excluding gains related to Express
stock sales and other one-time items, earnings rose to 48 cents a
share from 36 cents.
Earlier this month, Limited raised its adjusted earnings outlook
for the quarter to 44 cents to 46 cents a share.
At the same time, it reported revenue rose 9.6% to $2.46
billion, better than analysts' consensus estimate at the time, with
same-store sales rising 12%.
In the latest period, gross margin rose to 36.7% from 34.7%.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com