Well, according to Earnings.com, the adjusted income was three pennies better than analyst projections. As you know, sometimes that's all it takes. In fact, shares of Limited Brands were up over 4% going into the report. In the after-hours session, shares gained another 2%.

What should we make of this? The cliche don't fight the tape comes to mind. No doubt, Limited Brands is having problems. The same-store sales statistic in particular offers evidence of this. DailyFinance's Mercedes Cardona also mentioned issues with advertising cuts, which could potentially have a negative effect on brand image; she also expressed concerns about the retail environment in general. But the stock has done very well this year, and with the positive reaction to the Q2 numbers, I tend to think the momentum will continue.

Management better make sure the company's brands receive the proper advertising they require to remain competitive. Innovative ways of generating impressions at a lesser cost should be explored. Then again, most retail managements are simply worried about margins and cash flow. Making investments in brand equity isn't on the top of the list. Which is too bad.

But as I intimated earlier, the stock might make for a trade. We'll have to see how the shares play out over the next several sessions to get a good indication of what the market thinks of Limited Brands and its prospects for the holiday season.

Disclosure: I don't own any company mentioned; positions can change without notice.