COLUMBUS, Ohio, Nov. 19 /PRNewswire-FirstCall/ -- Limited Brands, Inc.
(NYSE: LTD) today reported 2008 third quarter results.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020520/CLM001LOGO )
Third Quarter Results
Earnings per share for the third quarter ended Nov. 1, 2008, were $0.01
compared to $0.03 last year. Third quarter operating income was $41.2 million
compared to $61.1 million last year, and net income was $4.2 million compared
to $12.1 million last year.
The above 2007 results include pre-tax gains of $24.5 million, or $0.04
per share, related to asset sales.
Excluding this item, third quarter earnings per share were $0.01 compared
to a loss of $0.01 last year. Third quarter operating income was $41.2
million compared to $36.6 million last year; and net income was $4.2 million
compared to a net loss of $2.4 million last year.
Comparable store sales for the third quarter decreased 7 percent, and net
sales were $1.842 billion compared to $1.923 billion last year.
2008 Outlook
The company expects 2008 fourth quarter earnings per share to be $0.85 to
$1.00 compared to $0.94 per share last year, which excluded 2007 significant
favorable items of $0.16 per share related to gift card breakage and income
taxes.
For 2008, the company expects earnings per share of $1.20 to $1.35,
excluding first half significant net favorable items of $0.20 per share,
compared to $1.21 per share last year, which excluded 2007 significant net
favorable items of $0.68 per share as described in previous press releases.
Earnings Call Information
Limited Brands will conduct its third quarter earnings call at 9 a.m.
Eastern time on Thursday, Nov. 20. To listen, call 1-866-583-6618
(International Dial-In Number: 1-937-200-3978). For an audio replay, call
1-866-NEWS-LTD (International Replay Number: 1-706-902-3452) or log onto
http://www.Limitedbrands.com. Additional third quarter financial information
is also available at http://www.Limitedbrands.com.
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
3,021 specialty stores. The company's products are also available online at
http://www.VictoriasSecret.com, http://www.BathandBodyWorks.com,
http://www.HenriBendel.com and http://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 third quarter earnings 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 third
quarter earnings 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 third quarter earnings 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.
LIMITED BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
THIRTEEN WEEKS ENDED NOVEMBER 1, 2008 AND NOVEMBER 3, 2007
(Unaudited)
(In thousands except per share amounts)
2008 2007
Net Sales $1,842,184 $1,923,104
Gross Profit 580,244 606,877
General, Administrative and Store
Operating Expenses (539,028) (545,793)
Operating Income 41,216 61,084
Interest Expense (44,464) (46,994)
Interest Income 5,565 6,330
Other Income 869 1,737
Minority Interest - 978
Income Before Income Taxes 3,186 23,135
Provision (Benefit) for Income Taxes (982) 11,000
Net Income $4,168 $12,135
Net Income Per Diluted Share $0.01 $0.03
Weighted Average Shares Outstanding 340,125 364,975
Certain prior year amounts have been reclassified to conform with the
current year presentation.
LIMITED BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
THIRTY-NINE WEEKS ENDED NOVEMBER 1, 2008 AND NOVEMBER 3, 2007
(Unaudited)
(In thousands except per share amounts)
2008 2007
Net Sales $6,051,579 $6,858,024
Gross Profit 1,981,736 2,212,656
General, Administrative and Store
Operating Expenses (1,654,925) (1,953,679)
Gain on Divestiture of Express - 301,843
Loss on Divestiture of Limited Stores - (72,308)
Net Gain on Joint Ventures 108,962 -
Operating Income 435,773 488,512
Interest Expense (136,213) (103,204)
Interest Income 16,743 12,466
Other Income 23,182 118,067
Minority Interest 3,733 22,575
Income Before Income Taxes 343,218 538,416
Provision for Income Taxes 139,224 209,000
Net Income $203,993 $329,416
Net Income Per Diluted Share $0.60 $0.85
Weighted Average Shares Outstanding 341,913 389,045
Certain prior year amounts have been reclassified to conform with the
current year presentation.
