Limited posts 4Q profit decline

Limited posts 4Q profit decline

	Published : Thu, 01 Mar 2007 00:13 By : Agencies Print this Story

COLUMBUS, Ohio (AP) - Limited Brands Inc. said on Wednesday that its earnings fell 15 percent in its fourth quarter, despite strong sales at Victoria's Secret and Bath & Body Works. The company also reduced its sales estimates at established stores for February.

Limited Brands said it made $439.8 million, or $1.08 per share, for the quarter ended Feb. 3 compared with profits of $519.2 million, or $1.28 per share, in its fourth quarter a year ago. Sales totaled $4 billion compared with $3.5 billion a year ago.

The fourth quarter had 14 weeks compared with 13 weeks in the year-ago quarter. Discounting the extra week and a $30.4 million gain the company reported a year ago from unused gift cards at Bath & Body Works and Express, the retailer said sales would have risen 10 percent.

Analysts surveyed by Thomson Financial expected profits of $1.08 per share on sales of $4 billion.

In the year-ago quarter, earnings were boosted by tax benefits and the unused gift cards, the company said. Excluding those items, earnings would have been 98 cents a share a year ago.

Sales at stores opened at least a year -- considered a key indicator of a retailer's strength -- were up 8 percent for the quarter and up 10 percent for Victoria's Secret and 9 percent for Bath & Body Works. Same-store sales among its apparel brands were up 1 percent in the quarter.

The company warned that it expects same-store sales to be lower than its previous forecast for February, in part because bad weather affected sales for Valentine's Day at Victoria's Secret and Bath & Body Works. It now expects same-store sales to rise by the low- to mid-single digits instead of the high single digits.

Limited Brands said it expects earnings in the first quarter to be 25 cents to 28 cents per share, compared with 25 cents in the year-ago quarter. Analysts expected earnings of 28 cents per share.

For the year, the company reported that earnings rose to $675.7 million, or $1.68 per share, compared with $683.2 million, or $1.66 a share, a year ago. The year-ago quarter included a 4-cent charge for an accounting change. Sales reached $10.7 billion, compared with $9.7 billion in the previous year.

The results were released after the stock market closed on Wednesday. Limited Brands shares were up 41 cents, or 1.50 percent, to close at $27.66 in regular trading on the New York Stock Exchange. In after-hours trading, shares slipped 8 cents to $27.58. The stock has traded between $22.80 and $32.60 the past year.

Limited Brands operates about 3,800 stores under the names Victoria's Secret, Bath & Body Works, Express, Limited Stores, C.O. Bigelow, La Senza, White Barn Candle Co., Henri Bendel and Diva London.