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Mixed bag for Victoria’s Secret owner: store sales up as income plummets Thursday, 16th August 2012
Photo credit: Limited Brands Inc.
Limited Brands Inc., owner of the Victoria’s Secret, La Senza and Henri Bendel brands, said second quarter income fell 37.9 per cent in the three months to July. Despite the drop, the group raised its full-year guidance in line with a rise in comparable store sales.
According to WWD, Limited Brands’ second quarter income fell by 37.9 per cent to USD 143.6 million, compared with an income of USD 231.2 million for the same time last year.
Excluding pretax charges relating to La Senza store closures, a non-taxable gain last year and a pretax expense relating to a charitable donation, the group’s adjusted income dropped 2.3 per cent to USD 147.2 million, compared with USD 150.7 million a year before.
Sales during the three months to 28 July fell 2.4 per cent to USD 2.40 billion from USD 2.46 billion, although the group noted that sales results from comparable quarter a year before included USD 216.6 million attributable to a third-party apparel sourcing business which was sold in November. Despite the decline, comparable store sales for the most recent quarter rose 8 per cent.
Limited Brands, which is preparing to launch its flagship Victoria’s Secret store on London’s New Bond Street, raised its full-year guidance, with projected EPS between USD 2.73 and USD 2.88, compared with previous guidance of USD 2.63 to USD 2.83.