Limited Brands Inc reported 2011 second quarter results.
Leslie H. Wexner, chairman and chief executive officer of Limited Brands, stated, "We're pleased with our second quarter performance. Our focus on managing inventory and expenses conservatively and staying agile yielded more full-priced selling and record results. As we enter the fall season, we will remain focused on our customers, and we see opportunity to continue to do better."
Second Quarter Results Adjusted earnings per share for the second quarter ended July 30, 2011, were $0.48 compared to $0.36 for the quarter ended July 31, 2010, which exclude certain significant items in both years as detailed below. Second quarter adjusted operating income was $307.0 million compared to operating income of $236.5 million last year, and adjusted net income was $150.7 million compared to $120.6 million last year.
Including the 2011 and 2010 significant items detailed below, reported second quarter earnings per share were $0.73 compared to $0.54 last year, operating income was $193.5 million compared to $236.5 million last year, and net income was $231.2 million compared to $178.7 million last year.
Significant items are as follows:
In 2011 (totaling to a benefit of $0.25 per share):
• A non-taxable gain of $147.1 million, or $0.47 per share, and a pre-tax expense of $113.4 million, or $0.22 per share, related to the charitable contribution of all of the company's remaining shares of Express to the Limited Brands Foundation.
In 2010 (totaling to a benefit of $0.18 per share):
• A pre-tax gain of $52.3 million, or $0.10 per share, related to the sale of a portion of the company's shares of Express in its initial public offering; • A pre-tax gain of $19.7 million and a related net tax benefit of $22.4 million, or $0.13 per share in total, related to the sale of the company's remaining interest in Limited Stores; and • A pre-tax loss of $25.2 million, or $0.05 per share, associated with the early retirement of portions of the company's 2012 and 2014 maturity bonds.
The company reported a comparable store sales increase of 9 percent for the second quarter ended July 30, 2011, compared to the second quarter ended July 31, 2010. The company reported net sales of $2.458 billion for the second quarter ended July 30, 2011, compared to sales of $2.243 billion last year.
2011 Outlook The company stated that it expects 2011 third quarter earnings per share to be $0.17 to $0.22 compared to record earnings per share of $0.18 per share last year. The company now expects August comparable store sales to increase in the high single digit range versus its previous guidance for a low single digit increase.
For 2011, the company increased its adjusted earnings per share forecast to $2.35 to $2.50 from $2.25 to $2.45 previously.
Limited Brands, through Victoria's Secret, Pink,Bath & Body Works, La Senza, C.O. Bigelow, White Barn Candle Co. and Henri Bendel, is an international company. The company operates 2,626 specialty stores in the United States and its brands are sold in more than 800 company-operated and franchised additional locations world-wide.
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