- Authorizes Additional $250 Million Share Repurchase Program -
- Expects Fourth Quarter Earnings Per Share Of $0.90 To $1.05 -
- Updates November Comp Guidance -
- Will Conduct Live Earnings Call At 5:30 P.M. Today -
COLUMBUS, Ohio, Nov. 20 /PRNewswire-FirstCall/ -- Limited Brands (NYSE:
LTD) today reported 2007 third quarter results.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020520/CLM001LOGO )
Third Quarter Results
Reported earnings per share for the third quarter ended November 3,
2007, were $0.03 compared to $0.06 last year. Third quarter operating
income was $61.1 million compared to $66.5 million last year, and net
income was $12.1 million compared to $23.5 million last year.
The above 2007 results include pre-tax gains of $24.5 million, or $0.04
per share, related to asset sales.
The company reported a comparable store sales decrease of 3 percent for
the 13 weeks ended November 3, 2007. Net sales were $1.923 billion compared
to net sales of $2.115 billion last year.
Share Repurchase
In the third quarter, the company repurchased 14.6 million shares of
stock for $336 million, leaving $96 million remaining in its current $250
million authorization. The company also announced that its Board of
Directors has authorized an additional $250 million share repurchase
program.
November and Fourth Quarter Outlook
The company stated that it now expects negative mid-single digit
comparable store sales for November, versus its previous guidance for flat
comparable store sales. It also expects fourth quarter earnings per share
of $0.90 to $1.05 versus $1.08 last year. The decline versus its previous
guidance reflects issues related to the opening of a new distribution
center for Victoria's Secret Direct and the challenging overall retail
environment. Last year's earnings per share results include approximately
$0.04 related to the 53rd week.
Earnings Call Information: Note New Date and Time
Limited Brands will conduct its third quarter earnings call at 5:30
p.m. Eastern time on Tuesday, November 20. To listen to the live call, dial
1-877-601-1433 (international dial-in number: 1-630-395-0024). For an audio
replay, dial 1-800-337-6551, followed by the passcode LTD (583),
(International Replay Number: 1-402-220-9656, passcode: LTD (or 583)) or
log onto http://www.LimitedBrands.com. Additional third quarter financial
information is also available at http://www.LimitedBrands.com.
ABOUT LIMITED BRANDS:
Limited Brands, through Victoria's Secret, PINK, Bath & Body Works,
C.O. Bigelow, La Senza, White Barn Candle Co. and Henri Bendel, presently
operates 2,921 specialty stores. The company's products are also available
online at http://www.VictoriasSecret.com, http://www.BathandBodyWorks.com and
http://www.LaSenza.com.
Safe Harbor Statement Under the Private Securities Litigation Reform
Act of 1995
The Company cautions that any forward-looking statements (as such term
is defined in the Private Securities Litigation Reform Act of 1995)
contained in this press release or the third quarter earnings call or made
by the Company or management of the Company involve risks and uncertainties
and are subject to change based on various important factors, many of which
are beyond our control. Accordingly, the Company's future performance and
financial results may differ materially from those expressed or implied in
any such forward- looking statements. Words such as "estimate," "project,"
"plan," "believe," "expect," "anticipate," "intend," "planned," "potential"
and similar expressions may identify forward-looking statements. The
following factors, among others, in some cases have affected and in the
future could affect the Company's financial performance and actual results
and could cause actual results to differ materially from those expressed or
implied in any forward- looking statements included in this press release
or the third quarter earnings call or otherwise made by the Company or
management: risks associated with general economic conditions, consumer
confidence and consumer spending patterns; the potential impact of national
and international security concerns on the retail environment, including
any possible military action, terrorist attacks or other hostilities; risks
associated with the seasonality of the Company's business; risks associated
with the highly competitive nature of the retail industry generally and the
segments in which we operate particularly; risks related to consumer
acceptance of the Company's products and the Company's ability to keep up
with fashion trends, develop new merchandise, launch new product lines
successfully, offer products at the appropriate price points and enhance
the Company's brand image; risks associated with the Company's ability to
retain, hire and train key personnel and management; risks associated with
the possible inability of the Company's manufacturers to deliver products
in a timely manner or meet quality standards; risks associated with the
Company's reliance on foreign sources of production, including risks
related to the disruption of imports by labor disputes, risks related to
political instability, risks associated with legal and regulatory matters,
risks related to duties, taxes, other charges and quotas on imports, risks
related to local business practices, potential delays or disruptions in
shipping and related pricing impacts and political issues and risks related
to currency and exchange rates; risks associated with the dependence on a
high volume of mall traffic and the possible lack of availability of
suitable store locations on appropriate terms; risks associated with labor
shortages or increased labor costs; risks associated with increases in the
costs of mailing, paper and printing; risks associated with our ability to
service any debt we incur from time to time as well as the requirements the
agreements related to such debt impose upon us; risks associated with the
Company's reliance on information technology, including risks related to
the implementation of new information technology and distribution systems,
including risks associated with our new Victoria's Secret Direct
distribution center; risks related to utilizing third parties to provide
information technology services; risks associated with severe weather
conditions, natural disasters or health hazards; risks associated with
rising energy costs; and risks associated with independent licensees. The
Company is not under any obligation and does not intend to make publicly
available any update or other revisions to any of the forward-looking
statements contained in this press release or the third quarter earnings
call to reflect circumstances existing after the date of this report or to
reflect the occurrence of future events even if experience or future events
make it clear that any expected results expressed or implied by those
forward-looking statements will not be realized.
LIMITED BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
THIRTEEN WEEKS ENDED NOVEMBER 3, 2007 AND OCTOBER 28, 2006
(Unaudited)
(In thousands except per share amounts)
2007 2006
Net Sales $1,923,104 $2,114,954
Gross Profit 614,085 759,357
General, Administrative and Store
Operating Expenses (553,001) (692,818)
Operating Income 61,084 66,539
Interest Expense (46,994) (25,655)
Interest Income 6,330 2,798
Minority Interest 978 (264)
Other Income (Expense) 1,737 (1,910)
Income Before Income Taxes 23,135 41,508
Provision for Income Taxes 11,000 18,000
Net Income $12,135 $23,508
Net Income Per Diluted Share $0.03 $0.06
Weighted Average Shares Outstanding 364,975 401,896
LIMITED BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
THIRTY-NINE WEEKS ENDED NOVEMBER 3, 2007 AND OCTOBER 28, 2006
(Unaudited)
(In thousands except per share amounts)
2007 2006
Net Sales $6,858,024 $6,645,897
Gross Profit 2,238,348 2,401,267
General, Administrative and Store
Operating Expenses (1,979,371) (1,952,002)
Gain on divestiture of Express 301,843 -
Loss on divestiture of Limited Stores (72,308) -
Operating Income 488,512 449,265
Interest Expense (103,204) (74,014)
Interest Income 12,466 20,591
Minority Interest 22,575 (240)
Other Income (Expense) 118,067 (4,331)
Income Before Income Taxes 538,416 391,271
Provision for Income Taxes 209,000 156,000
Income Before Cumulative Effect of
Change in Accounting Principle 329,416 235,271
Cumulative Effect of Change in Accounting
Principle (Net of tax of $445) - 696
Net Income $329,416 $235,967
Net Income Per Diluted Share:
Income Before Cumulative Effect of
Change in Accounting Principle $0.85 $0.59
Cumulative Effect of Change in
Accounting Principle - -
Net Income Per Diluted Share $0.85 $0.59
Weighted Average Shares Outstanding 389,045 401,551
SOURCE Limited Brands
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Related links:
http://www.limitedbrands.com
http://www.VictoriasSecret.com
http://www.BathandBodyWorks.com http://www.LaSenza.com
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/20020520/CLM001LOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Investor Relations, Amie Preston,
+1-614-415-6704, apreston@limitedbrands.com; or Media Relations,
Tammy Roberts Myers, +1-614-415-7072, extcomm@limitedbrands.com,
both of Limited Brands
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