Limited 1Q Net Up 47% As Same-Store Sales Jump; Lifts Fiscal Year View

   DOW JONES NEWSWIRES 
 

Limited Brands Inc.'s (LTD) fiscal first-quarter earnings grew 47% as the specialty retailer posted a double-digit increase in same-store sales and expanded margins.

Looking ahead, the parent of Victoria's Secret and Bath & Body Works now sees earnings of $2.25 to $2.45 a share, up from the February outlook of $2.15 to $2.35. Limited also predicted fiscal second-quarter earnings of 38 cents to 43 cents. Analysts polled by Thomson Reuters projected 43 cents for the quarter.

Limited's dominant positions in the intimate apparel and beauty and personal care segments have helped the retailer post surging same-store sales and improved margins. Its monthly same-store sales growth has led the retail sector this year with impressive multi-percentage point beats for four consecutive months.

For the quarter ended April 30, Limited reported a profit of $165.2 million, or 50 cents a share, up from $112.5 million, or 34 cents a share, a year earlier. Excluding gains related to Express Inc. (EXPR) stock sales and cash distributions and other impacts, adjusted earnings grew to 40 cents from 25 cents. Earlier this month, Limited raised its guidance to 37 cents to 39 cents.

Gross margin grew to 38% from 35.9%.

Limited previously reported net sales jumped 15% to $2.22 billion, topping analysts' estimate. Same-store sales also grew 15%.

Shares fell 2.7% to $41.29 in after-hours trading. The stock has jumped 38% this year through Wednesday's close.

-By John Kell, Dow Jones Newswires; 212-416-2480; [e-mail]