Limited Brands declares next steps in ongoing plan
23 Jun '07
3 min read
Limited Brands Inc provided an update of several initiatives to refocus its business on key growth areas, reduce costs and accelerate programs to return value to shareholders.
"We are on track with our value-enhancing strategic initiatives and are now ready to embark on fine-tuning the organization to better match the size and complexity of the 'new Limited Brands' where we'll focus primarily on intimate apparel and personal care," said Leslie H. Wexner, chairman and chief executive officer.
"To improve overall profitability, we have launched a broad effort to streamline the company, enhance productivity and efficiency, and focus resources on the most promising growth opportunities."
"Increasing our previously declared stock repurchase program and accelerating the pace of our repurchases reflect the strength of our balance sheet, our confidence in the company's future growth prospects and our commitment to returning value to shareholders," added Wexner.
As previously disclosed, Limited Brands initiated a complete review of its selling, general and administrative (SG&A) expenses with a view to re-sizing and realigning the company's expense structure to reflect the company's new enterprise structure.
The company will undertake a significant reduction of SG&A expenses with expected savings of approximately $100 million annually beginning in fiscal 2008.
These savings will be primarily realized through a decrease in headcountof approximately 10 percent at the corporate and brand home offices, which includes the elimination of open positions, reduction of current staff and transfers to the new Express business in conjunction with the upcoming sale.
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