Limited Brands, Inc. (LTD), a specialty retailer of women’s intimate and other apparel, beauty and personal care products, recently raised its fourth-quarter 2009 guidance on the heels of better-than-expected sales and merchandise margin rates in the quarter.
Limited Brands now expects its fourth-quarter 2009 earnings in the range of 92 cents to 97 cents a share, up from 71 cents to 86 cents forecasted earlier.
Limited Brands said comparable-store sales for the five weeks ended Jan 2, 2010 dropped 2% year-over-year, after increasing 3% for the four weeks ended Nov 28, 2009. Total net sales for the five weeks ended Jan 2, 2010, climbed marginally by 1% to $1,660 million from $1,644 million delivered in the prior-year quarter.
On a year-to-date basis, comparable-store sales fell 5% versus the year-ago period, whereas total net sales declined 5.2% to $8,010 million from $8,451 million posted in the prior-year period.
Currently, Limited Brands maintains a Zacks # 3 Rank, which translates into a short-term ‘Hold’ recommendation on the stock. In the last 30 days, the Zacks Consensus Estimate for fiscal year 2009 has shown a marginal improvement of 1% to $1.05 per share, supported by upward revisions in EPS estimate by 3 analysts out of 17 analysts covering the stock. In addition, the Zacks Consensus Estimate also remains in line with the Most Accurate EPS Estimate, missing just by a penny. Long term, we continue to rate the stock as ‘Neutral’.
The company through its flagship brands Victoria’s Secret, Pink, Bath & Body Works, C.O. Bigelow and La Senza sells its merchandise in the United States and Canada. Limited Brands currently operates 3,025 specialty stores.
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