Victoria's Secret parent 3Q net income rises

AP News
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Posted: Nov 16, 2011 5:35 PM
Victoria's Secret parent 3Q net income rises

Limited Brands Inc. said Wednesday that its third-quarter net income rose 22 percent with higher sales at its Victoria's Secret and Bath and Body Works chains, and it raised its full year forecast.

The Columbus, Ohio-based company has seen strong sales as consumers continue to buy themselves little luxuries like candles and lingerie, an important niche as holiday shopping begins.

Limited's net income rose 22 percent to $94.3 million, or 31 cents per share, from $61.3 million, or 18 cents per share, last year. Excluding a one-time tax benefit, it earned 25 cents per share, while analysts expected 24 cents per share.

As the company said earlier this month, revenue rose 10 percent to $2.17 billion.

The company said it expects net income of $1.28 to $1.43 per share for the fourth quarter, while analysts expect $1.42 per share on $3.6 billion in revenue.

After the company reported its results, the shares fell 77 cents to $42.20 in after-hours trading. They had ended the regular session down $1.24, or 2.8 percent, at $42.97.

For the full year, Limited Brands now expects to earn $2.38 to $2.53 per share, up from a prior forecast for $2.35 to $2.50 per share. Analysts expect net income of $2.51 per share.

The company operates 2,628 specialty stores in the U.S., including Victoria's Secret, Pink, Bath and Body Works, La Senza and Henri Bendel.

Executives plan to hold a conference call to discuss the results with analysts Thursday morning.