Limited Brands (LTD) announced earnings for the third quarter Wednesday that dropped from last year, when one-time items boosted results. The company also revealed a decline in sales at established stores and provided cautious guidance for the fourth quarter.
Retailers have felt the pinch amid the steepening economic downturn, as consumers cut their spending.
The company reported net income for the third quarter of $4.2 million or $0.01 per share, compared to $12.1 million or $0.03 per share for the year-ago quarter.
The year-ago results included pre-tax gains of $24.5 million, or $0.04 per share related to asset sales. Excluding the item, the company reported a loss of $0.01 per share last year.
Net sales for the third quarter fell to $1.84 billion from $1.92 billion in the prior-year quarter. Same-store sales, a key measure of retailing performance that leaves out the impact of new store openings, decreased 7%.
Looking forward, the company said it expects fourth-quarter earnings to be $0.85 to $1.00 per share. Analysts were looking for $1.00 per share.
For the full year, the company said it now expects earnings of $1.20 to $1.35 per share, excluding one-time items. Previously, the company had forecast $1.45 to $1.60 per share.
Beyond results for the most recent quarter, guidance from retailers is pointing to a weak holiday shopping season - making for lean times in what should be the key time of the year.
In past couple weeks, Wal-Mart (WMT), Kohl's (KSS), Abercrombie & Fitch (ANF), Nordstrom (JWN) and JC Penney (JCP) are among the major retailers that have reported either weak earnings, weak guidance or both.
Meanwhile, the latest figures on overall retail sales showed a 2.8% slide in October, a bigger plunge than in the wake of the September 11th terrorist attacks in 2001.
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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.