Limited Brands Raises 4Q Earnings Target; Dec Comp Sales Top Estimates

Limited Brands Inc. (LTD) raised its fiscal fourth-quarter earnings target on the heels of December same-store sales performance that easily topped analyst estimates.

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.

For the five weeks ended Dec. 31, Limited Brands reported a 7% increase in same-store sales, topping the 5.7% jump expected by analysts surveyed by Thomson Reuters.

The company now expects to record earnings of $1.42 to $1.46 a share in its fiscal fourth quarter, pushing above the $1.28 to $1.43 per-share profit projected in November.

The company has reported quarterly profit growth for more than two years with help from tight inventory management and conservative spending efforts. Fiscal third-quarter earnings rose 54% as same-store sales jumped 9%.

Shares closed Wednesday at $39.66 and were inactive in premarket trade. The stock is up 34% in the past 12 months.

-By Mia Lamar, Dow Jones Newswires; 212-416-3207; [e-mail]