|Limited Brands Reports Second Quarter 2011 Earnings|
-- PROVIDES THIRD QUARTER AND INCREASES FULL YEAR 2011 EARNINGS GUIDANCE --
-- INCREASES AUGUST COMPARABLE STORE SALES GUIDANCE --
COLUMBUS, Ohio, Aug. 17, 2011 /PRNewswire via COMTEX/ --
Limited Brands, Inc. (NYSE: LTD) today reported 2011 second quarter results.
Leslie H. Wexner, chairman and chief executive officer of Limited Brands, stated, "We're pleased with our second quarter performance. Our focus on managing inventory and expenses conservatively and staying agile yielded more full-priced selling and record results. As we enter the fall season, we will remain focused on our customers, and we see opportunity to continue to do better."
Second Quarter Results
Adjusted earnings per share for the second quarter ended July 30, 2011, were $0.48 compared to $0.36 for the quarter ended July 31, 2010, which exclude certain significant items in both years as detailed below. Second quarter adjusted operating income was $307.0 million compared to operating income of $236.5 million last year, and adjusted net income was $150.7 million compared to $120.6 million last year.
Including the 2011 and 2010 significant items detailed below, reported second quarter earnings per share were $0.73 compared to $0.54 last year, operating income was $193.5 million compared to $236.5 million last year, and net income was $231.2 million compared to $178.7 million last year.
Significant items are as follows:
In 2011 (totaling to a benefit of $0.25 per share):
In 2010 (totaling to a benefit of $0.18 per share):
The company reported a comparable store sales increase of 9 percent for the second quarter ended July 30, 2011, compared to the second quarter ended July 31, 2010. The company reported net sales of $2.458 billion for the second quarter ended July 30, 2011, compared to sales of $2.243 billion last year.
At the conclusion of this press release is a reconciliation of reported to adjusted results.
The company stated that it expects 2011 third quarter earnings per share to be $0.17 to $0.22 compared to record earnings per share of $0.18 per share last year. The company now expects August comparable store sales to increase in the high single digit range versus its previous guidance for a low single digit increase.
For 2011, the company increased its adjusted earnings per share forecast to $2.35 to $2.50 from $2.25 to $2.45 previously.
Earnings Call Information
Limited Brands will conduct its second quarter earnings call at 9 a.m. Eastern on Thursday, August 18. To listen, call 1-866-583-6618 (international dial-in number: 1-937-200-3978). For an audio replay, call 1-866-NEWS-LTD (international replay number: 1-706-902-3452) or log onto www.Limitedbrands.com. Additional second quarter financial information is also available at www.Limitedbrands.com.
ABOUT LIMITED BRANDS:
Limited Brands, through Victoria's Secret, Pink, Bath & Body Works, La Senza, C.O. Bigelow, White Barn Candle Co. and Henri Bendel, is an international company. The company operates 2,626 specialty stores in the United States and its brands are sold in more than 800 company-operated and franchised additional locations world-wide. The company's products are also available online at www.VictoriasSecret.com, www.BathandBodyWorks.com, www.HenriBendel.com and www.LaSenza.com.
Limited Brands b-roll footage of stores is available through our online newsroom.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
Limited Brands, Inc. cautions that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this press release or the second quarter earnings call involve risks and uncertainties and are subject to change based on various factors, many of which are beyond our control. Accordingly, our future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Words such as "estimate," "project," "plan," "believe," "expect," "anticipate," "intend," "planned," "potential" and similar expressions may identify forward-looking statements. Risks associated with the following factors, among others, in some cases have affected and in the future could affect our financial performance and actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements included in this press release or the second quarter earnings call:
We are not under any obligation and do not intend to make publicly available any update or other revisions to any of the forward-looking statements contained in this press release or the second quarter earnings call to reflect circumstances existing after the date of this press release or to reflect the occurrence of future events even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized. Additional information regarding these and other factors can be found in "Item 1A. Risk Factors" in our 2010 Annual Report on Form 10-K.
The "Adjusted Results" provided in the attached unaudited Consolidated Statements of Income and Reconciliation of Adjusted Results are non-GAAP financial measures and reflect the following:
In the second quarter of 2011, adjusted results exclude the following:
In the first quarter of 2011, adjusted results exclude the following:
In the second quarter of 2010, adjusted results exclude the following:
In the first quarter of 2010, adjusted results exclude the following:
The Unaudited Adjusted Consolidated Statements of Income should not be construed as an alternative to the reported results determined in accordance with generally accepted accounting principles. Further, the Company's definition of adjusted income information may differ from similarly titled measures used by other companies. While it is not possible to predict future results, management believes the adjusted information is useful for the assessment of the ongoing operations of the Company. The Unaudited Adjusted Consolidated Statements of Income should be read in conjunction with the Company's historical financial statements and notes thereto contained in the Company's quarterly reports on Form 10-Q and annual report on Form 10-K.
SOURCE Limited Brands, Inc.