Limited Tops Analysts’ Estimates After Trimming Expenses

Limited Brands Inc., the owner of the Victoria’s Secret chain, reported second-quarter profit that topped estimates after trimming expenses and drawing customers with discounts.

Excluding an after-tax gain, profit was 19 cents a share, the Columbus, Ohio-based company said today in a statement distributed by PR Newswire. Analysts projected profit of 16 cents, the average of estimates compiled by Bloomberg.

Limited increased promotions across all its brands during the quarter to attract traffic and clear inventory. Sales at stores open at least a year dropped 9 percent in the three months ended Aug. 1.

Limited added 61 cents, or 4.4 percent, to $14.58 today in New York Stock Exchange composite trading. The shares have gained 45 percent this year.

Total second-quarter revenue fell 9.5 percent to $2.07 billion from a year earlier. Net income declined to $74.3 million, or 23 cents a share, from $102 million, or 30 cents. The company trimmed $55.9 million in general, administrative and store operating expenses.

Limited forecast a loss of 7 cents to 12 cents a share in the third quarter, compared with the 11-cent loss analysts estimated. The retailer said full-year earnings may total 75 cents to 90 cents a share.

Limited operates 3,009 specialty stores including Bath & Body Works, C.O. Bigelow, La Senza and White Barn Candle Co. link.....