Women's apparel and personal care products retailer Limited Brands Inc. (LTD) said Wednesday after the markets closed its first quarter profit fell 25% from last year, hurt by lower sales and the absence of gains from special items that it recorded in the prior year period.
However, the company's quarterly earnings per share came in above analysts' expectations. At the same time, the company forecast second quarter earnings below analysts' current consensus estimate, but raised its full year earnings outlook.
Limited Brands shares are currently losing 3.15% in after hours trading after closing the day's regular trading session at $47.96, down 9 cents. The shares trade in a 52-week range of $31.43 to $51.84.
Limited Brands is a specialty apparel retailer focused on lingerie, beauty and personal care products through the Victoria's Secret, Pink, Bath & Body Works, La Senza and Henri Bendel chains.
For the first quarter ended April 28, 2012, the Columbus, Ohio-based company reported net income for the first quarter of $124.6 million or $0.41 per share, compared to $165.2 million or $0.50 per share for the year-ago quarter.
The year-ago quarter results included a pre-tax gain of $86.4 million, or $0.17 per share, related to the sale of Express stock; a pre-tax non-cash expense of $50 million, or $0.10 per share, related to the multi-year funding of the company's charitable foundation; and an income tax benefit of $11 million, or $0.03 per share, related to the favorable resolution of certain income tax matters.
On average, 21 analysts polled by Thomson Reuters expected the company to earn $0.40 per share for the first quarter. Analysts' estimates typically exclude special items.
Earlier this month, the company had revised its first quarter earnings guidance to $0.38 to $0.40 per share from its previous guidance of $0.35 to $0.40 per share.
As previously announced, the company's net sales for the first quarter fell 3% to $2.15 billion from last year's first quarter sales of $2.22 billion, which included $214.0 million attributable to the third party apparel sourcing business that was sold in November 2011. Same-store sales for the first quarter increased 7%. Nineteen analysts had a consensus revenue estimate of $2.14 billion for the first quarter.
Looking forward, the company forecast second quarter earnings of $0.40 to $0.45 per share. Analysts currently expect the company to earn $0.50 per share for the second quarter.
The company raised its annual earnings guidance to a range of $2.63 to $2.83 per share from its prior guidance of $2.60 to $2.80 per share. Analysts currently expect the company to earn $2.83 per share for the fiscal year 2012.
Among others in the industry, Abercrombie & Fitch Co. (ANF) earlier Wednesday reported a sharp drop in first quarter profit amid higher costs in a weak European environment.
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