(RTTNews) - Specialty retailer Limited Brands Inc. (LTD: News ) 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.

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