For 2006 (which is a 53-week year under the retail calendar), the Company expects earnings per share of $1.50 to $1.60. Earnings per share in 2005 (before cumulative effect of accounting change of $0.04) were $1.62, which included the following significant items totaling $0.29 per share:
- A $0.25 per share gain related to the favorable resolution of certain tax matters, and - A $0.04 per share gain related to the recognition of gift card breakage.
Excluding the estimated impact of stock option expense of $0.04 per share in 2006 and the 2005 significant items discussed above, the 2006 projection represents 16-23 percent earnings growth over 2005.
To hear further commentary provided on Limited Brands' first quarter earnings call, dial 1-877-601-1433 for the live call prior to 9:00 a.m. ET on May 18, 2006 or call 1-800-337-6551, followed by the passcode LTD (583), or log onto www.Limitedbrands.com for an audio replay.
Additional financial information is also available at www.Limitedbrands.com.
Limited Brands, through Victoria's Secret, Bath & Body Works, C.O. Bigelow, Express, Limited Stores, White Barn Candle Co. and Henri Bendel, presently operates 3,559 specialty stores.
Victoria's Secret products are also available through the catalogue and www.VictoriasSecret.com. Bath & Body Works products are also available through the catalogue and at www.BathandBodyWorks.com.