Limited Brands 4th-Quarter Profit Rose 14% Amid Stronger Sales, Margins

   By Tess Stynes 
 

Limited Brands Inc.'s (LTD) fiscal fourth-quarter earnings rose 14% as the retailer posted stronger revenue and margins.

However, shares fell 1.2% to $44 in after-hours trading as it provided downbeat guidance for the new fiscal year and the fiscal first quarter.

For the fiscal year, Limited Brands projected per-share earnings of $2.92 to $3.12, below recent estimates of analysts polled by Thomson Reuters recently for $3.24.

For the fiscal first quarter, the company forecast per-share earnings of 40 cents to 45 cents, lower than analysts' views for 51 cents.

The company, which owns Victoria's Secret and Bath & Body Works, dominates the intimate-apparel and personal-care markets, and those segments have helped the retailer post same-store sales growth and improved margins.

For the period ended Feb. 2, Limited Brands reported a profit of $411.4 million, or $1.39 a share, up from $359.4 million, or $1.17 a share, a year earlier. Excluding asset write-downs at its La Senza business and other items, adjusted earnings were $1.76 from $1.50. The company in November expected $1.73.

Gross margin rose to 44.5% from 43.5%.

The company recently reported that net sales rose 9.7% to $3.86 billion and same-store sales rose 5%, including 3% growth at Victoria's Secret and 7% at Bath & Body Works.

Write to Tess Stynes at [e-mail]

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