Limited Brands 4Q Profit Slides 21% On La Senza Charges

   DOW JONES NEWSWIRES 
 

Limited Brands Inc.'s (LTD) fiscal fourth-quarter earnings fell 21% as the specialty retailer booked charges tied to the closure of some La Senza stores, though adjusted profit climbed and topped the company's own forecast.

Limited issued a disappointing outlook for the new fiscal year, projecting earnings of $2.60 to $2.80 a share, while calling for earnings of 35 cents to 40 cents a share for the current quarter. Analysts polled by Thomson Reuters expected a profit of $2.91 a share for the year and 44 cents a share for the quarter.

Shares dropped 2.6% to $44.30 after hours but have climbed 13% so far this year through the close.

The parent of Victoria's Secret and Bath & Body Works commands a dominant position in the intimate-apparel and beauty and personal-care segments, which has helped the retailer post surging same-store sales and improved margins. In the latest period, same-store sales rose 7% and gross margin widened to 43.5% from 41.8%.

"Our record results in 2011 were only possible by being focused, faster and frugal," Chief Executive Leslie H. Wexner told Dow Jones Newswires. "Our goal for 2012 is to get even better by continuing to build our brands by trying to be more focused, even faster and always finding ways to be more frugal."

For the quarter ended Jan. 28, the company posted a profit of $359.4 million, or $1.17 a share, down from $452.3 million, or $1.36 a share, a year earlier. The latest results included a net charge of 33 cents a share for asset impairment at the La Senza brand, among other things, while the year earlier had a benefit of 10 cents a share tied to Express stock and dividend payments. Excluding items, adjusted earnings rose to $1.50 a share from $1.26.

Earlier this month, the company said it expected to report adjusted earnings at the high end of its prior estimate of $1.42 to $1.46 a share. It posted net sales of $3.52 billion, topping the Street estimate.

-By Anne Pallivathuckal and Lauren Pollock, Dow Jones Newswires; 212-416-2356; [e-mail]