Women's apparel and personal care products retailer Limited Brands Inc. (LTD) said Wednesday after the markets closed its second quarter profit fell 38% 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 third quarter earnings below analysts' current consensus estimate, but once again raised its full year earnings outlook.
Limited Brands shares are currently losing 0.47% in after hours trading after closing the day's regular trading session at $48.99, up 8 cents. The shares trade in a 52-week range of $33.13 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 second quarter ended July 28, 2012, the Columbus, Ohio-based company reported net income of $143.6 million or $0.49 per share, compared to $231.2 million or $0.73 per share for the year-ago quarter.
The latest quarter results include a pre-tax charge of $3.6 million, or $0.01 per share, related to La Senza store closures. The year-ago quarter results included a non-taxable gain of $147.1 million, or $0.47 per share, and a pre-tax expense of $113.4 million, or $0.22 per share, related to the charitable contribution of all of the company's remaining shares of Express (EXPR) to the Limited Brands Foundation.
Excluding items, adjusted net income for the second quarter was $147.2 million or $0.50 per share, compared to $150.7 million or $0.48 per share in the prior year quarter.
On average, 21 analysts polled by Thomson Reuters expected the company to earn $0.48 per share for the second quarter. Analysts' estimates typically exclude special items.
Earlier this month, the company had raised its second quarter adjusted earnings guidance to a range of $0.46 to $0.48 per share from its previous guidance of $0.40 to $0.45 per share.
Operating income for the quarter rose to $305.3 million from $193.5 million a year earlier, while adjusted operating income grew to $308.9 million from $307.0 million last year.
As previously announced, the company's net sales for the second quarter fell 2.4% to $2.40 billion from last year's second quarter sales of $2.46 billion, which included $216.6 million attributable to the third party apparel sourcing business that was sold in November 2011. Same-store sales for the second quarter increased 8%. Twenty analysts had a consensus revenue estimate of $2.38 billion for the second quarter.
Looking forward, the company forecast third quarter adjusted earnings of $0.15 to $0.20 per share. Analysts currently expect the company to earn $0.24 per share for the third quarter.
The company once again raised its annual earnings guidance to a range $2.73 to $2.88 per share from its prior guidance of $2.63 to $2.83 per share.
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