Specialty retailer Limited Brands Inc. (LTD) is slated to release its third-quarter results after the market closes on Wednesday. The company currently expects third-quarter results to range between breakeven and a loss of $0.04 per share, which was revised in October from previous expectations of a loss of $0.07 to $0.12 per share. In the same quarter a year ago, the Columbus, Ohio-based company had reported net income of $4.2 million or $0.01 per share.
On average, 18 analysts surveyed by Thomson Reuters expect the company to post a loss of $0.01 per share for the quarter, with estimates ranging between loss of $0.03 and breakeven per share. Analysts' estimates typically exclude special items.
In early November, women's apparel and personal care products retailer reported net sales for the third quarter of $1.78 billion, down 3.3% from $1.84 billion a year earlier, and comparable store sales dropped 2%, compared to a decrease of 7% in the year ago quarter. Wall Street analysts were projecting net sales of $1.77 billion for the quarter, representing a 3.9% decline from last year.
For the month of October, Limited Brands' net sales declined to $561.1 million from last year's $580.4 million, and comparable store sales decreased 4%, compared to a 9% decrease in October 2008. October comparable store sales were expected to be in the negative low-to-mid single digits, compared to its previous estimate of roughly flat.
For September, Limited Brands reported a 1% growth in same-store sales, helped by strong results at its Bath & Body Works chain, while net sales declined to $654.8 million from $673.4 million reported last year. In August, Limited Brands reported a 4% decline in same-store sales, while total sales declined to $561.4 million from $588.4 million last year.
The reduced customer spending due to recession has had a negative impact on many retailers as the economic crisis encouraged the purchase of only essential items. Specialty retailers to a great extent have their fortunes tied to employment, which is a decisive factor when it comes to discretionary spending. Meanwhile, some improving trends are seen by late as the retailers head into the holiday shopping season. Also, an improving global economy, benevolent fiscal stimulus measures and aggressive pricing action propelled individual's purchasing power.
In its preceding second quarter, Limited Brands' profit fell 27% from last year, as same-store sales declined 9%. The company reported net income of $74.3 million or $0.23 per share, compared to $102 million or $0.30 per share a year ago. Adjusted net income for the second quarter was $60.3 million or $0.19 per share, compared to $93.9 million or $0.27 per share in the prior year. Net sales fell 9% to $2.07 billion from $2.28 billion in the same quarter last year, affected due to sharp cut back in consumer spending, especially on non-essential items, in light of the U.S. Recession.
Founded in 1963, Limited Brands, formerly known as The Limited, Inc., operates as a specialty retailer of women's intimate and other apparel, beauty and personal care products, and accessories, through specialty retail stores, as well as through its websites and catalogues. The company operates through various brands, such as Victoria's Secret, Pink, Bath & Body Works, C.O. Bigelow, La Senza, White Barn Candle Co. and Henri Bendel. As of October 31, 2009, the company operated 3,025 stores, including 1,046 Victoria's Secret Stores, 304 La Senza and 1,636 Bath & Body Works stores.
Among others in the specialty retailing sector, Gap Inc. (GPS) is slated to announce its third-quarter results on Thursday, November 19. Wall Street analysts forecast earnings of $0.44 per share for the quarter, with estimates ranging between $0.42 and $0.45 per share. The company earned $0.35 per share in the year-ago period. Most recently, the San Francisco, California-based operator of Old Navy and Banana Republic stores reported third-quarter net sales of $3.59 billion, up 1% from $3.56 billion a year ago, while its comparable store sales were flat, compared to a decrease of 12% in the third quarter of the prior year.
In the month of October, Gap reported a 4% rise in comparable store sales compared to a decrease of 16% in October 2008. The company's net sales were up 5% to $1.14 billion. September comparable store sales decreased 1%, and net sales dropped 1% to $1.33 billion. Gap reported a 3% decline in comparable store sales for the month of August, and net sales dropped 2% to $1.12 billion.
Specialty retailer Aeropostale, Inc. (ARO) is slated to release its third-quarter results on Wednesday, December 2. The company projects third-quarter net earnings in a range of $0.90 to $0.91 per share, which was lifted recently from the previous outlook of $0.84 to $0.85 per share, encouraged by the better-than-expected results for the month of October. The company reported earnings of $0.63 per share in the third quarter of 2008. Analysts expect third-quarter earnings of $0.91 per share, within the range of $0.90 to $0.93 per share. For the third quarter, total net sales increased 18% to $567.8 million from $482 million in the year ago period.
Consumer goods company Hanesbrands Inc. (HBI) in late October reported that third-quarter net income increased to $41.14 million or $0.43 per share from $15.92 million or $0.17 per share last year, driven by higher operating profit and lower income tax rate. Total net sales, meanwhile, fell to $1.06 billion from $1.15 billion a year ago.
While announcing the second-quarter results, Limited Brands raised its full year 2009 adjusted earnings guidance to a range of $0.75 to $0.90 per share from its prior guidance of $0.67 to $0.87 per share. Analysts currently expect the company to earn $0.97 per share for the full year 2009, with estimates ranging between $0.90 and $1.05 per share. Free cash flow for the full year 2009 is now expected to range between $500 million and $600 million, compared to its earlier estimate in the range of $350 million to $450 million.
In an October 22 research note, brokerage Jesup & Lamont initiated its coverage on Limited Brands with a 'Hold' rating.
LTD closed Tuesday's regular trading session at $18.03, down $0.34 or 1.85%, on a volume of 3.45 million shares. In the past 52 weeks, shares have been trading between $5.98 and $19.99, with a 3-month average volume of 5.35 million shares.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.