Limited Brands sales remain stable in FY'13

Full-Year Results

Adjusted earnings per share for the 53-week year ended Feb. 2, 2013, which exclude certain significant items, were $2.92 compared to $2.60 for the year ended Jan. 28, 2012. Adjusted operating income was $1.707 billion in 2012 compared to $1.546 billion in 2011, and adjusted net income was $866.7 million compared to $817.3 million in 2011.

Including significant items, reported 2012 53-week full-year earnings per share were $2.54 compared to $2.70 for the 52-week 2011; operating income was $1.573 billion compared to $1.238 billion in 2011; and net income was $753.0 million compared to $850.1 million in 2011.

The company reported a comparable stores sales increase of 6% for the 53-week year ended Feb. 2, 2013, compared to the 53 weeks ended Feb. 4, 2012. Net sales were $10.459 billion for the 53-week year ended Feb. 2, 2013, compared to $10.364 billion for the 52 weeks ended Jan. 28, 2012.

Fourth quarter 2011 and 2011 full-year sales included $13.1 million and $702.4 million attributable to the third party apparel sourcing business, which was sold in November 2011.

Fourth Quarter Results

Adjusted earnings per share for the 14-week fourth quarter ended Feb. 2, 2013, which exclude certain significant items as detailed below, were $1.76 compared to $1.50 for the 13-week fourth quarter ended Jan. 28, 2012.  Fourth quarter adjusted operating income was $907.8 million compared to $786.5 million last year, and adjusted net income was $519.2 million compared to $459.2 million last year.

Including the significant items below, reported fourth quarter earnings per share were $1.39 compared to $1.17 last year; operating income was $787.8 million compared to $641.1 million last year; and net income was $411.4 million compared to $359.4 million last year.

Significant items are as follows:

In 2012 (totaling to a charge of $0.37 per share):

- A pre-tax, non-cash charge of $93.2 million, or $0.31 per share, related to intangible asset impairment at La Senza; and
 - A pre-tax, non-cash charge of $26.9 million, or $0.06 per share, related to store fixed asset impairment at Henri Bendel.
- In 2011 (totaling to a charge of $0.33 per share)
- A pre-tax gain of $110.8 million, or $0.32 cents per share, related to the sale of our third party apparel sourcing business;
- A pre-tax, principally non-cash charge of $256.1 million, or $0.74 per share, related to intangible asset impairment and restructuring charges, including store closures, at La Senza; and
- A tax benefit of $28.4 million, or $0.09 cents per share, related to certain discrete tax matters.
- Comparable store sales for the 14-week fourth quarter ended Feb. 2, 2013, increased 5% compared to the 14 weeks ended Feb. 4, 2012.  Net sales were $3.856 billion for the 14-week fourth quarter ended Feb. 2, 2013, compared to $3.515 billion for the 13 weeks ended Jan. 28, 2012.  The fifth week in January 2013 represented approximately $125 million in sales.