DOW JONES NEWSWIRES Limited Brands Inc.'s (LTD) fiscal third-quarter net income fell 66% from a year earlier, when the company recorded a gain and higher sales.
Additionally, the apparel and specialty retailer cut its fiscal-year guidance and issued a fiscal fourth-quarter view that matches analyst estimates at its high end.
For the quarter ended Nov. 1, the company reported net income of $4.17 million, or a penny a share, down from $12.1 million, or 3 cents a share. The prior year's quarter had a gain of 4 cents a share on asset sales.
In August, the company said earnings would be break-even to 4 cents.
Earlier this month, the operator of the Victoria's Secret and Bath & Body Works chains reported revenue fell 4.2% to $1.84 billion, as same-store sales fell 7%. Same-store sales declined in the single-digit percentages each month over the past year.
Gross margins inched down to 31.5% from 31.6%.
Total sales for the company's largest unit, Victoria's Secret, rose 3.2% to $1.11 billion. Its Bath & Body Works unit posted sales of $424.2 million, down 1.3%.
Looking ahead, the company expects fiscal fourth-quarter earnings of 85 cents to $1 a share. Analysts polled by Thomson Reuters were looking for $1.
For the fiscal year, Limited lowered its projected earnings to $1.20 to $1.35, excluding 20 cents in items. In August, it had predicted $1.45 to $1.60. Analysts were last looking for earnings of $1.38.
The sagging economy had forced many retailers to trim expansion plans, and last month Limited said it planned to lower its capital spending next year by as much as 40%. Retailers have been hurt in recent months by slumping mall traffic, tighter credit, high energy costs and a consumer-spending slowdown.
Shares of Limited, which have slumped 37% over the past month and hit an 11-year low during the regular session Wednesday, rebounded 3.7% to $7.86 in after-hours trading.
-By John Kell, Dow Jones Newswires; 201-938-5285; john.kell@dowjones.com
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(END) Dow Jones Newswires
November 19, 2008 17:24 ET (22:24 GMT)

Publié le 19 novembre 2008 Copyright © 2008 Dowjones