Limited Brands raises 2012 full-year outlook

Third Quarter Results

Adjusted earnings per share for the third quarter ended Oct. 27, 2012 were $0.26 compared to $0.25 for the third quarter ended Oct. 29, 2011.  2011 earnings per share included approximately $0.03 attributable to the third party apparel sourcing business, which was sold in November 2011.  Excluding this amount from last year, adjusted earnings per share increased 18%.

Adjusted third quarter operating income was $197.4 million compared to operating income of $186.1 million last year, and adjusted net income was $75.6 million compared to $77.6 million last year. Adjusted results exclude certain significant items as detailed below:

In 2012 (totaling to a charge of $0.01 per share):

• A pre-tax charge of $10.4 million, or $0.04 per share, related to La Senza store closures which were previously announced; and
• A pre-tax gain of $12.7 million, or $0.03 per share, from cash distributions related to the company's Easton investments.

In 2011:

• An income tax benefit, primarily due to the resolution of certain tax matters, of $16.7 million, or $0.06 per share.

Including the significant items above, reported third quarter earnings per share were $0.25 compared to $0.31 last year; operating income was $186.9 million compared to $186.1 million last year; and net income was $73.4 million compared to $94.3 million last year.

The company reported a comparable store sales increase of 5 percent for the third quarter ended Oct. 27, 2012, compared to the third quarter ended Oct. 29, 2011.  The company reported net sales of $2.050 billion for the third quarter ended Oct. 27, 2012, compared to net sales of $2.173 billion last year.

Third quarter 2011 net sales included $258.7 million attributable to the third party apparel sourcing business, which was sold in November 2011.

2012 Outlook

The company stated that it expects fourth quarter earnings of $1.62 to $1.77 per share.  For 2012, the company increased its adjusted earnings per share forecast to $2.78 to $2.93.

Limited Brands, through Victoria's Secret, Pink, Bath & Body Works, La Senza 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 700 company-operated and franchised additional locations world-wide. 

Limited Brands Inc