Women's apparel and personal care products retailer Limited Brands Inc. (LTD) said Wednesday after the markets closed its third quarter profit fell 22% from last year, as sales declined and expenses rose.
However, the company's quarterly earnings per share came in above analysts' expectations. At the same time, the company gave a downbeat earnings forecast for the fourth quarter, but once again raised its full year earnings outlook.
The company also said its board of directors has authorized a $250 million share repurchase program, which includes $49.6 million remaining under the previous $500 million program.
Limited Brands shares are currently gaining 0.86% in after hours trading after closing the day's regular trading session at $46.60, down 71 cents or 1.50%. The shares trade in a 52-week range of $37.57 to $52.20.
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 third quarter ended October 27, 2012, the Columbus, Ohio-based company reported net income of $73.4 million or $0.25 per share, compared to $94.3 million or $0.31 per share for the year-ago quarter.
The latest quarter results include a pre-tax charge of $10.4 million, or $0.04 per share, related to La Senza store closures; and a pre-tax gain of $12.7 million, or $0.03 per share, from cash distributions related to the company's Easton investments. The year-ago quarter results included an income tax benefit, mainly due to the resolution of certain tax matters, of $16.7 million, or $0.06 per share.
Excluding items, adjusted net income for the third quarter was $75.6 million or $0.26 per share, compared to $77.6 million or $0.25 per share in the prior year quarter.
On average, 22 analysts polled by Thomson Reuters expected the company to earn $0.24 per share for the third quarter. Analysts' estimates typically exclude special items.
Earlier this month, the company had raised its third quarter adjusted earnings guidance to a range of $0.23 to $0.25 per share from its previous guidance of $0.15 to $0.20 per share.
Operating income for the quarter grew to $186.9 million from $186.1 million a year earlier, while adjusted operating income rose to $197.4 million from $186.1 million last year.
As previously announced, the company's net sales for the third quarter fell 5.5% to $2.05 billion from last year's third quarter sales of $2.17 billion, which included $258.7 million attributable to the third party apparel sourcing business that was sold in November 2011. Same-store sales for the second quarter increased 5%. Twenty-one analysts had a consensus revenue estimate of $2.05 billion for the third quarter.
The company declared its regular quarterly dividend of $0.25 per share, payable on December 10 to shareholders of record on November 26.
Looking forward, the company forecast fourth quarter adjusted earnings of $1.62 to $1.77 per share. Analysts currently expect the company to earn $1.77 per share for the fourth quarter. The fourth quarter includes the all important holiday season.
The company raised its annual earnings guidance to a range $2.78 to $2.93 per share from its prior guidance of $2.73 to $2.88 per share. Analysts currently expect the company to earn $2.90 per share for the full year.
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