Women's apparel and personal care products retailer Limited Brands, Inc. (LTD) said Wednesday after the markets closed that its third quarter profit surged from last year, helped by cost cuts and an income tax benefit. The company's quarterly earnings per share, excluding items, also came in above its own as well as analysts' expectations. At the same time, the company once again raised its earnings outlook for the full year.
The Columbus, Ohio-based company reported net income for the third quarter of $14.9 million or $0.05 per share, compared to $4.2 million or $0.01 per share for the year-ago quarter.
The latest quarter results include an income tax benefit of $8.8 million, or $0.03 per share, mainly due to the resolution of certain tax matters.
Excluding the income tax benefit, adjusted net income for the 2009 third quarter was $6.1 million or $0.02 per share.
On average, 18 analysts polled by Thomson Reuters expected the company to report a loss of $0.01 per share for the third quarter. Analysts' estimates typically exclude special items.
Last month, the company raised its third quarter earnings outlook to between breakeven and a loss of $0.04 per share, compared to its prior expectations of a loss of $0.07 to $0.12 per share.
Operating income for the quarter rose to $58.9 million from $41.2 million a year ago.
The operator of the Victoria's Secret and Bath & Body Works chains said net sales for the third quarter fell 3.3% to $1.78 billion from $1.84 billion in the same quarter last year. Same-store sales for the quarter declined 2%. Thirteen analysts had a consensus revenue estimate of $1.77 billion for the third quarter.
Limited Brands, through Victoria's Secret, Pink, Bath & Body Works, C.O. Bigelow, La Senza, White Barn Candle Co. and Henri Bendel, presently operates 3,025 specialty stores.
Limited Brands' sales have been affected due to sharp cut back in consumer spending, especially on non-essential items, in light of the economic downturn. To offset declining sales, the company has cut its costs. General, administrative and store operating expenses fell 6.5% to $503.9 million in the third quarter.
For the first nine months of its fiscal year, the company reported net income of $91.8 million or $0.28 per share, compared to $204.0 million or $0.60 per share for the same period last year.
Adjusted net income for the nine-month period was $69.0 million or $0.21 per share, compared to $134.4 million or $0.39 per share in the prior year period.
Net sales for the nine-month period fell 8% to $5.57 billion from $6.05 billion in the corresponding prior year period.
Looking forward, the company forecast fourth quarter earnings of $0.71 to $0.86 per share. Analysts currently expect the company to earn $0.79 per share for the fourth quarter.
The company raised its full year 2009 adjusted earnings guidance to a range of $0.93 to $1.08 per share from its prior guidance of $0.75 to $0.90 per share. Analysts currently expect the company to earn $0.97 per share for the full year 2009.
Limited Brands shares, which have traded in a range of $5.98 to $19.99 over the past year, closed Wednesday's regular trading session at $18.27, up 24 cents or 1.33% and gained an additional 54 cents or 2.96% in after hours trading.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.