By
Reuters
Published
Nov 17, 2011
Download
Download the article
Print
Text size

Limited Brands profit beats view, raises outlook

By
Reuters
Published
Nov 17, 2011

Limited Brands Inc (LTD.N), parent of lingerie chain Victoria's Secret, reported a higher-than- expected quarterly profit, as tight expense control boosted operating margins and raised its profit outlook for the year.

Limited Brands
2011 Victoria's Secret Fashion Show / Photo: Corbis

However, the company, which also operates the Bath & Body Works and La Senza chains, forecast a profit for the key holiday quarter mostly below analysts' expectations.

The company's shares edged down to $42.70 after closing at $42.97.

Limited's stock had risen 40 percent through Wednesday, outperforming a 18 percent rise in the S&P Apparel .GSPRETA index, as the company enjoyed some of the biggest same-store sales among U.S. retailers as shoppers spend more on items such as lingerie and body creams.

For the holiday quarter, the company expects an adjusted profit of $1.28 to $1.43 a share. Analysts were looking for a profit of $1.42 a share, according to Thomson Reuters I/B/E/S.

Limited posted third-quarter net income of $94.3 million, or 31 cents a share, down from $61.3 million, or 18 cents a share, a year ago.

Excluding items, the company earned 25 cents a share, beating analysts' average estimate of 24 cents.

Operating margins in the quarter ended October 29 rose to 8.6 percent from 7.53 percent in the year-ago period.

Earlier in November, the company said quarterly sales rose 10 percent to $2.17 billion.

Limited now estimates a 2011 profit of $2.38 to $2.53 a share, up from $2.35 to $2.50 previously.

(Reporting by Mihir Dalal in New York; editing by Richard Chang and Andre Grenon)

© Thomson Reuters 2024 All rights reserved.