COLUMBUS, Ohio, Jan. 8 /PRNewswire-FirstCall/ -- Limited Brands, Inc.
(NYSE: LTD) reported a comparable store sales decrease of 10 percent for the
five weeks ended Jan. 3, 2009, compared to the five weeks ended Jan. 5, 2008.
The company reported net sales of $1.644 billion for the five weeks ended Jan.
3, 2009, compared to net sales of $1.744 billion last year.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020520/CLM001LOGO )
The company's December sales results were below expectations. Promotional
activity was increased to drive traffic and clear inventory, resulting in
merchandise margins that were down significantly to last year and below
expectations. The Victoria's Secret Stores' semi-annual sale began earlier
than planned and earlier than last year, which favorably impacted Victoria's
Secret Stores' December comparable store sales by roughly 2 points. Although
the negative impact of the semi-annual sale timing shift on January results is
difficult to project, the company currently projects a January comp decline in
the mid-to-high teens. The company currently estimates that fourth quarter
earnings will be between $0.55 and $0.70 per share.
The company reported a comparable store sales decrease of 9 percent for
the 48 weeks ended Jan. 3, 2009. Net sales were $8.451 billion compared to
net sales of $9.461 billion last year.
2007 net sales include Express sales through July 6, 2007, the closing
date of the sale of a majority interest to affiliates of Golden Gate Capital,
and Limited Stores sales through Aug. 3, 2007, the closing date of the
transfer of a majority interest to affiliates of Sun Capital Partners.
To hear further commentary provided on Limited Brands' prerecorded
December sales message, call 1-866-639-7583 (1-866-NEWS-LTD), or log onto
www.Limitedbrands.com for an audio replay.
ABOUT LIMITED BRANDS:
Limited Brands, through Victoria's Secret, Pink, Bath & Body Works, C.O.
Bigelow, La Senza, White Barn Candle Co. and Henri Bendel, presently operates
3,029 specialty stores. The company's products are also available online at
www.VictoriasSecret.com, www.BathandBodyWorks.com, www.HenriBendel.com and
www.LaSenza.com.
Safe Harbor Statement Under the Private Securities Litigation Reform Act
of 1995
We caution that any forward-looking statements (as such term is defined in
the Private Securities Litigation Reform Act of 1995) contained in this press
release or the December sales call involve risks and uncertainties and are
subject to change based on various important factors, many of which are beyond
our control. Accordingly, our future performance and financial results may
differ materially from those expressed or implied in any such forward-looking
statements. Words such as "estimate," "project," "plan," "believe," "expect,"
"anticipate," "intend," "planned," "potential" and similar expressions may
identify forward-looking statements. Risks associated with the following
factors, among others, in some cases have affected and in the future could
affect our financial performance and actual results and could cause actual
results to differ materially from those expressed or implied in any forward-
looking statements included in this press release or the December sales call:
- general economic conditions, consumer confidence and consumer spending
patterns, including risks related to:
- the continued deterioration in the U.S. economic environment,
including recessionary pressures;
- the significant decline in consumer confidence and the negative
impact on consumer discretionary spending;
- the disruption and significant tightening in the U.S. credit and
lending markets;
- the dependence on a high volume of mall traffic and the possible lack
of availability of suitable store locations on appropriate terms;
- the seasonality of our business;
- our ability to grow through new store openings and existing store
remodels and expansions;
- our ability to expand into international markets;
- independent licensees;
- our direct channel business including risks associated with our new
distribution center;
- our failure to protect our reputation and our brand images;
- our failure to protect our trade names and trademarks;
- market disruptions including severe weather conditions, natural
disasters, health hazards, terrorist activities or the prospect of
these events;
- stock price volatility;
- our failure to maintain our credit rating;
- our ability to service our debt;
- the highly competitive nature of the retail industry generally and the
segments in which we operate particularly;
- consumer acceptance of our products and our ability to keep up with
fashion trends, develop new merchandise, launch new product lines
successfully, offer products at the appropriate price points and
enhance our brand image;
- our ability to retain key personnel;
- our ability to attract, develop and retain qualified employees and
manage labor costs;
- our reliance on foreign sources of production, including risks related
to:
- political instability,
- duties, taxes, other charges on imports,
- legal and regulatory matters,
- currency and exchange rates,
- local business practices and political issues,
- potential delays or disruptions in shipping and related pricing
impacts and
- the disruption of imports by labor disputes;
- the possible inability of our manufacturers to deliver products in a
timely manner or meet quality standards;
- rising energy costs;
- increases in the costs of mailing, paper and printing;
- our ability to implement and sustain information technology systems;
and
- our failure to comply with regulatory requirements.
We are not under any obligation and do not intend to make publicly
available any update or other revisions to any of the forward-looking
statements contained in this press release or the December sales call to
reflect circumstances existing after the date of this press release or to
reflect the occurrence of future events even if experience or future events
make it clear that any expected results expressed or implied by those forward-
looking statements will not be realized. Additional information regarding
these and other factors can be found in "Item 1A. Risk Factors" in our 2007
Annual Report on Form 10-K and in our third quarter 2008 Quarterly Report on
Form 10-Q.
LIMITED BRANDS
DECEMBER 2008
Comparable Store Sales Increase (Decrease):
Year-to- Year-to-
December December Date Date
2008 2007 2008 2007
Victoria's Secret
Stores (9%) (8%) (8%) (2%)
La Senza(1) (10%) (4%) (3%) 0%
Bath & Body Works (11%) (8%) (10%) (4%)
Express(2) - - - 6%
Limited Stores(3) - - - 4%
Total Apparel - - - 5%
Limited Brands (10%) (8%) (9%) (2%)
1.) La Senza comparable store sales not included in total Limited Brands'
comparable store sales until January 2008 as the business was acquired
on Jan. 12, 2007
2.) Express comparable store sales through July 6, 2007, closing date of
the sale of majority interest to affiliates of Golden Gate Capital
3.) Limited Stores comparable store sales through Aug. 3, 2007, closing
date of the transfer of majority interest to affiliates of Sun Capital
Partners
Total Stores:
Stores Stores
Operating Year-to-date Operating
at 2/2/08 Opened Closed at 1/3/09
Victoria's Secret Stores 1,020 41 (14) 1,047
La Senza 312 15 (5) 322
Bath & Body Works 1,592 78 (21) 1,649
Henri Bendel 2 3 - 5
Bath & Body Works Canada - 6 - 6
Total Limited Brands 2,926 143 (40) 3,029
