Tags: Limited Brands | LTD | retail | malls | stocks

Limited Strengthens as Shoppers Return

By    |   Monday, 11 Jul 2011 01:23 PM

As the economy goes, so goes life at the mall. Limited Brands (LTD), parent company of shopping mall icons Victoria's Secret, Pink, White Barn Candle Company, La Senza, C.O. Bigelow, Bath & Body Works, and Henri Bendel, reports business is picking up as consumers loosen their purse-strings and shop again. Limited Brands net sales during the first quarter rose by 15 percent to $2.217 billion.

Adjusted earnings per share for the quarter hit 40 cents compared to 25 cents for the same quarter a year earlier. That figure did beat the 39 cents per share that analysts were expecting, according to FactSet.

The company attributed gains in sales and income to developing its brands. "With a disciplined approach to managing our business, we delivered record first quarter results. I am proud of our team's focus on the fundamentals and brand building ... we will strive to get even better," says Leslie H. Wexner, chairman and chief executive officer of Limited Brands.

Looking ahead, the company expects second quarter earnings to finish between 38 cents and 43 cents per share, while fiscal 2011 earnings per share should finish between $2.25 and $2.45.

Business continues to be pick up. Limited Brands reported a comparable store sales increase of 6 percent for the month of May compared to the previous year.

Limited reported net sales of $717.4 million for the four weeks ended May 28, 2011, compared to net sales of $657.3 million for the same period last year.

Opportunities abroad

Ratings agencies are pleased with the company's performance.

"We expect Limited Brands' operating performance to continue to be strong given its leading brands, its expertise in merchandise and marketing, as well as opportunities for international expansion," says Maggie Taylor, a senior credit officer with Moody's.

Zacks has a long-term neutral rating on the company with a short-term buy recommendation.


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As the economy goes, so goes life at the mall. Limited Brands (LTD), parent company of shopping mall icons Victoria's Secret, Pink, White Barn Candle Company, La Senza, C.O. Bigelow, Bath Body Works, and Henri Bendel, reports business is picking up as consumers loosen...
Limited Brands,LTD,retail,malls,stocks
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2011-23-11
Monday, 11 Jul 2011 01:23 PM
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