COLUMBUS, Ohio, Feb. 22, 2012 /PRNewswire/ -- Limited Brands,
Inc. (NYSE: LTD) today reported 2011 fourth quarter and full-year
results.
(Logo: http://photos.prnewswire.com/prnh/20020520/CLM001LOGO
)
Fourth Quarter Results
Adjusted earnings per share for the fourth quarter ended
Jan. 28, 2012, which exclude certain
significant items as detailed below, increased 19 percent to
$1.50 compared to $1.26 for the quarter ended Jan. 29, 2011. Fourth quarter adjusted
operating income was $786.5 million
compared to $713.5 million last year,
and adjusted net income was $459.2
million compared to $419.7
million last year.
Including the significant items below, reported fourth quarter
earnings per share were $1.17
compared to $1.36 last year;
operating income was $641.1 million
compared to $713.5 million last year;
and net income was $359.4 million
compared to $452.3 million last
year.
Significant items are as follows:
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.
In 2010 (totaling to a benefit of $0.10 per share):
- A pre-tax gain of $44.9 million,
or $0.09 per share, related to the
sale of Express stock; and
- A pre-tax gain of $7.1 million,
or $0.01 per share, related to an
Express dividend payment.
The company reported a comparable store sales increase of 7
percent for the fourth quarter ended Jan.
28, 2012, compared to the fourth quarter ended Jan. 29, 2011. The company reported net
sales of $3.515 billion for the
fourth quarter ended Jan. 28, 2012,
compared to sales of $3.456 billion
last year.
Total sales were negatively impacted by the sale of our third
party apparel sourcing business in the beginning of November 2011.
Full-Year Results
Adjusted earnings per share for the year ended Jan. 28, 2012, which exclude certain significant
items, increased 26 percent to $2.60
compared to $2.06 for the year ended
Jan. 29, 2011. Adjusted
operating income was $1.546 billion
in 2011 compared to $1.284 billion in
2010, and adjusted net income was $817.3
million compared to $684.5
million in 2010.
Including significant items, reported 2011 full-year earnings
per share were $2.70 compared to
$2.42 in 2010; operating income was
$1.238 billion compared to
$1.284 billion in 2010; and net
income was $850.1 million compared to
$804.8 million in 2010.
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 store sales increase of 10
percent for the year ended Jan. 28,
2012, compared to the year ended Jan.
29, 2011. The company reported net sales of
$10.364 billion for the year ended
Jan. 28, 2012, compared to sales of
$9.613 billion last year.
2012 Outlook
The company currently expects 2012 full-year earnings per share
to be between $2.60 and $2.80,
including earnings per share between $0.35
and $0.40 in the first quarter.
The company expects to report a February comparable store sales
increase in the mid to high single digit range, versus its previous
estimate of up low single digits.
Share Repurchase
The company also announced that it has completed its previously
announced $250 million share
repurchase program, and the board of directors has authorized a new
$500 million share repurchase
program.
Earnings Call and Additional Information
Limited Brands will conduct its fourth quarter earnings call at
9 a.m. Eastern on Feb. 23. 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 2,623
specialty stores in the United
States and its brands are sold in more than 600
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 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 2010 Annual Report on Form 10-K.
Adjusted information which provides non-GAAP financial
information and estimates is presented in order to improve
investors' understanding of historical and expected results and
improve comparability of financial information from period to
period.
LIMITED
BRANDS, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
THIRTEEN
WEEKS ENDED JANUARY 28, 2012 AND JANUARY 29, 2011
|
|
(Unaudited)
|
|
(In
thousands except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
Net Sales
|
$ 3,515,426
|
|
$ 3,455,860
|
|
Cost of Goods Sold, Buying and
Occupancy
|
(1,987,769)
|
|
(2,011,107)
|
|
Gross Profit
|
1,527,657
|
|
1,444,753
|
|
General, Administrative and
Store Operating Expenses
|
(765,460)
|
|
(731,251)
|
|
Impairment of Goodwill and Other
Intangible Assets
|
|
(231,862)
|
|
-
|
|
Gain on Divestiture of
Third-Party Sourcing Business
|
110,801
|
|
-
|
|
Operating Income
|
641,136
|
|
713,502
|
|
Interest Expense
|
(63,487)
|
|
(48,299)
|
|
Other Income
|
2,289
|
|
52,830
|
|
|
|
|
|
|
|
Income Before Income
Taxes
|
579,938
|
|
718,033
|
|
Provision for Income
Taxes
|
220,497
|
|
265,742
|
|
|
|
|
|
|
|
Net Income
|
$
359,441
|
|
$
452,291
|
|
|
|
|
|
|
|
Net Income Per Diluted
Share
|
$
1.17
|
|
$
1.36
|
|
|
|
|
|
|
|
Weighted Average Shares
Outstanding
|
306,042
|
|
332,875
|
|
|
|
|
|
|
LIMITED
BRANDS, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
THIRTEEN
WEEKS ENDED JANUARY 28, 2012 AND JANUARY 29, 2011
|
|
(Unaudited)
|
|
(In
thousands except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
Adjustments
|
|
Adjusted
|
|
Reported
|
|
Adjustments
|
|
Adjusted
|
|
Net Sales
|
$ 3,515,426
|
|
$
-
|
|
$ 3,515,426
|
|
$ 3,455,860
|
|
$
-
|
|
$ 3,455,860
|
|
Cost of Goods Sold,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Buying &
Occupancy
|
(1,987,769)
|
|
16,985
|
|
(1,970,784)
|
|
(2,011,107)
|
|
-
|
|
(2,011,107)
|
|
Gross Profit
|
1,527,657
|
|
16,985
|
|
1,544,642
|
|
1,444,753
|
|
-
|
|
1,444,753
|
|
General, Administrative
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store Operating
Expenses
|
(765,460)
|
|
7,357
|
|
(758,103)
|
|
(731,251)
|
|
-
|
|
(731,251)
|
|
Impairment of Goodwill and Other
Intangible Assets
|
(231,862)
|
|
231,862
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Gain on Divestiture of
Third-Party Sourcing Business
|
110,801
|
|
(110,801)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Operating Income
|
641,136
|
|
145,403
|
|
786,539
|
|
713,502
|
|
-
|
|
713,502
|
|
Interest Expense
|
(63,487)
|
|
-
|
|
(63,487)
|
|
(48,299)
|
|
-
|
|
(48,299)
|
|
Other (Expense)
Income
|
2,289
|
|
-
|
|
2,289
|
|
52,830
|
|
(52,011)
|
|
819
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Income
Taxes
|
579,938
|
|
145,403
|
|
725,341
|
|
718,033
|
|
(52,011)
|
|
666,022
|
|
Provision for Income
Taxes
|
220,497
|
|
45,636
|
|
266,133
|
|
265,742
|
|
(19,400)
|
|
246,342
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
$
359,441
|
|
$
99,767
|
|
$
459,208
|
|
$
452,291
|
|
$
(32,611)
|
|
$
419,680
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Per Diluted
Share
|
$
1.17
|
|
|
|
$
1.50
|
|
$
1.36
|
|
|
|
$
1.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares
Outstanding
|
306,042
|
|
|
|
306,042
|
|
332,875
|
|
|
|
332,875
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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-TWO
WEEKS ENDED JANUARY 28, 2012 AND JANUARY 29, 2011
|
|
(Unaudited)
|
|
(In
thousands except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
Net Sales
|
$ 10,363,998
|
|
$ 9,613,277
|
|
Cost of Goods Sold, Buying and
Occupancy
|
(6,307,237)
|
|
(5,982,489)
|
|
Gross Profit
|
4,056,761
|
|
3,630,788
|
|
General, Administrative and
Store Operating Expenses
|
(2,698,107)
|
|
(2,346,754)
|
|
Impairment of Goodwill and Other
Intangible Assets
|
(231,862)
|
|
-
|
|
Gain on Divestiture of
Third-Party Sourcing Business
|
|
110,801
|
|
-
|
|
Operating Income
|
1,237,593
|
|
1,284,034
|
|
Interest Expense
|
(246,274)
|
|
(208,394)
|
|
Other Income
|
235,157
|
|
174,820
|
|
|
|
|
|
|
|
Income Before Income
Taxes
|
1,226,476
|
|
1,250,460
|
|
Provision for Income
Taxes
|
376,394
|
|
445,674
|
|
|
|
|
|
|
|
Net Income
|
$
850,082
|
|
$
804,786
|
|
|
|
|
|
|
|
Net Income Per Diluted
Share
|
$
2.70
|
|
$
2.42
|
|
|
|
|
|
|
|
Weighted Average Shares
Outstanding
|
314,311
|
|
332,874
|
|
|
|
|
|
|
LIMITED
BRANDS, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
FIFTY-TWO
WEEKS ENDED JANUARY 28, 2012 AND JANUARY 29, 2011
|
|
(Unaudited)
|
|
(In
thousands except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
Adjustments
|
|
Adjusted
|
|
Reported
|
|
Adjustments
|
|
Adjusted
|
|
Net Sales
|
$ 10,363,998
|
|
$
-
|
|
$ 10,363,998
|
|
$ 9,613,277
|
|
$
-
|
|
$ 9,613,277
|
|
Cost of Goods Sold,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Buying &
Occupancy
|
(6,307,237)
|
|
16,985
|
|
(6,290,252)
|
|
(5,982,489)
|
|
-
|
|
(5,982,489)
|
|
Gross Profit
|
4,056,761
|
|
16,985
|
|
4,073,746
|
|
3,630,788
|
|
-
|
|
3,630,788
|
|
General, Administrative
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store Operating
Expenses
|
(2,698,107)
|
|
170,785
|
|
(2,527,322)
|
|
(2,346,754)
|
|
-
|
|
(2,346,754)
|
|
Impairment of Goodwill and Other
Intangible Assets
|
(231,862)
|
|
231,862
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Gain on Divestiture of
Third-Party Sourcing Business
|
110,801
|
|
(110,801)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Operating Income
|
1,237,593
|
|
308,831
|
|
1,546,424
|
|
1,284,034
|
|
-
|
|
1,284,034
|
|
Interest Expense
|
(246,274)
|
|
-
|
|
(246,274)
|
|
(208,394)
|
|
-
|
|
(208,394)
|
|
Other (Expense)
Income
|
235,157
|
|
(233,478)
|
|
1,679
|
|
174,820
|
|
(147,394)
|
|
27,426
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Income
Taxes
|
1,226,476
|
|
75,353
|
|
1,301,829
|
|
1,250,460
|
|
(147,394)
|
|
1,103,066
|
|
Provision for Income
Taxes
|
376,394
|
|
108,092
|
|
484,486
|
|
445,674
|
|
(27,088)
|
|
418,586
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
$
850,082
|
|
$
(32,739)
|
|
$
817,343
|
|
$
804,786
|
|
$
(120,306)
|
|
$
684,480
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Per Diluted
Share
|
$
2.70
|
|
|
|
$
2.60
|
|
$
2.42
|
|
|
|
$
2.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares
Outstanding
|
314,311
|
|
|
|
314,311
|
|
332,874
|
|
|
|
332,874
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to
Consolidated Statements of Income and Reconciliation of Adjusted
Results for additional information.
|
|
|
|
|
|
|
|
|
|
|
|
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LIMITED
BRANDS, INC. AND SUBSIDIARIES
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NOTES TO
CONSOLIDATED STATEMENTS OF INCOME AND
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RECONCILIATION OF ADJUSTED
RESULTS
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(Unaudited)
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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 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.
Fiscal 2010
In the fourth quarter of 2010, adjusted results exclude the
following:
- A $44.9 million pre-tax gain
($28.2M net of tax), included in
other income and expense, related to the sale of Express
stock.
- A $7.1 million pre-tax gain
($4.4M net of tax), included in other
income and expense, related to a dividend payment from
Express.
In the second quarter of 2010, adjusted results exclude the
following:
- A $52.3 million pre-tax gain
($31.8M net of tax), included in
other income and expense, related to the initial public offering of
Express including the sale of a portion of the company’s shares.
- A $19.7 million pre-tax gain,
included in other income and expense, and a related net tax benefit
of $22.4 million, associated with the
sale of our remaining 25% interest in Limited Stores.
- A $25.2 million pre-tax loss
($15.8M net of tax), included in
other income and expense, associated with the early retirement of
portions of our 2012 and 2014 maturity bonds.
In the first quarter of 2010, adjusted results exclude the
following:
- A $48.7 million pre-tax gain
($29.6 million net of tax), included
in other income and expense, related to a $56.5 million cash distribution from
Express.
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.