Continue reading Limited Brands Q4 Earnings Beat Estimates

Limited Brands Q4 Earnings Beat Estimates originally appeared on BloggingStocks on Thu, 25 Feb 2010 13:30:00 EST. Please see our terms for use of feeds.

Consumers are finally spending more, with September posting the first gain in more than a year. The International Council of Shopping Centers and Goldman Sachs (NYSE: GS) found that retail sales inched 0.1% higher last month. It doesn't seem like much, but a gain when you anticipate a fall is good news magnified. But, it came at the expense of great deals and other tools to entice somewhat hesitant customers into stores.

Kohl's (NYSE: KSS) and Limited Brands (NYSE: LTD) reported sales increases in September for stores open more than a year. J.C. Penney (NYSE: JCP), Macy's (NYSE: M) and Target (NYSE: TGT) posted declines, but they were better than expected. Delayed school openings thanks to a late Labor Day helped push to September sales that might have occurred in August otherwise.

Of course, all eyes are on the coming holiday season. The National Retail Federation forecasts U.S. consumer spending of $437.6 billion - up only slightly from $433.7 billion four years ago. So, we still have a lot of ground to make up before we can celebrate a recovery. As long as the situation is staying steady, though, we'll at least have a solid starting point.

Consumers' wallets peeking open originally appeared on BloggingStocks on Fri, 09 Oct 2009 16:20:00 EST. Please see our terms for use of feeds.

Limited Brands (NYSE: LTD), whose colleagues include Gap (NYSE: GPS) and Hanesbrands (NYSE: HBI), is one sexy company. It operates the Victoria's Secret chain of stores among other concepts. However, it's been having trouble increasing sales and income during the recession -- like every other retailer out there, of course. But the stock has been strong, and the bulls have yet more evidence that their thesis on the business might be justified.

Limited Brands reported second quarter results Wednesday after the close. Its adjusted earnings were 19 cents per share versus 27 cents per share in the comparable period last year. Total sales dropped 9.5%, and same-store revenues collapsed 9%. With numbers like those, where do I get the idea that the bulls might have a case?

Continue reading Limited Brands: Buy or Sell after better-than-expected Q2?

Limited Brands: Buy or Sell after better-than-expected Q2? originally appeared on BloggingStocks on Thu, 20 Aug 2009 08:45:00 EST. Please see our terms for use of feeds.

Limited Brands (NYSE: LTD), the retailer that runs stores such as Bath & Body Works, Pink, and the sexy Victoria's Secret, issued its Q1 numbers after the bell on Wednesday.

The bottom line didn't look bad. Not that it looked great, mind you. The company earned 1 cent per share. The fact that there was any profit at all was big news. According to analysts, a loss of 3 cents per share was more likely.

The revenue picture was not so pretty, however. Net sales dropped by 10%. And same-store sales decreased 7%. I guess buying lingerie isn't a top priority during a time when jobs are being cut and consumers look in terror upon their 401(k) balances.

Continue reading Limited Brands sees a sexy profit in Q1

Limited Brands sees a sexy profit in Q1 originally appeared on BloggingStocks on Thu, 21 May 2009 08:45:00 EST. Please see our terms for use of feeds.

Target (NYSE: TGT) is scheduled to report Q2 EPS on August 19. TGT September & October option implied volatility of 43 is near its 26-week average according to Track Data, suggesting non-directional price movement.

Gap (NYSE: GPS) is scheduled to report Q2 EPS on August 21. GPS September option implied volatility of 47 is near its 26-week average of 43, suggesting slightly larger price movement.

Limited Brands (NYSE: LTD) is scheduled to report Q2 EPS after the market close on August 20. LTD September option implied volatility of 51 is near its 26-week average, suggesting non-directional price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Option Update: Retailers volatility flat into EPS & outlook originally appeared on BloggingStocks on Mon, 18 Aug 2008 10:55:00 EST. Please see our terms for use of feeds.

The details are worth knowing. Wal-Mart sales at stores open at least a year gained 3% while Costco's climbed 10%. Limited, the owner of the Victoria's Secret lingerie chain suffered a 5% decline. But Wal-Mart's results -- while strong -- were disappointing to investors who expected 3.4% growth. What is driving this increasing budget-consciousness? The beginning of back-to-school shopping, the suspension of sales taxes in some states, $4 a gallon gas, 9.6% inflation and seven months of job losses are all combining to push shoppers to discounters and away from pricier retail outlets.

Continue reading $4 gas sends Wal-Mart, Costco up; Limited down

$4 gas sends Wal-Mart, Costco up; Limited down originally appeared on BloggingStocks on Thu, 07 Aug 2008 09:20:00 EST. Please see our terms for use of feeds.

• Juicy's packaging, which resembles candy (Lingerie disguised as candy?!? Didn't Spencer's Gifts come up with this idea somewhere around 1978?).
• Juicy's most popular color scheme, which revolves around the color pink (Pink? For girls? Clearly, Juicy's designers are underappreciated revolutionaries!).
• Juicy's most popular design, in which its logo is emblazoned across the backside of the wearer (I wonder if Juicy's next step will be to go after all the lower-back tattoo wearers out there. Tramp-stampers, beware!).

Cheeky! Juicy Couture slaps Victoria's Secret with a lawsuit originally appeared on BloggingStocks on Wed, 07 May 2008 18:16:00 EST. Please see our terms for use of feeds.

Wal-Mart, other retailers report better-than-expected same-store sales originally appeared on BloggingStocks on Thu, 06 Mar 2008 09:57:00 EST. Please see our terms for use of feeds.

In a short story in the Wall Street Journal [subscription required], Sharen Turney, chief executive of of Victoria's Secret, confided during a conference call that the lingerie chain may have gotten off track at some point and may now be just too sexy.

Can there be such a thing as too sexy? There are times you can be too trashy, or too slutty, but can you be too sexy? I think not!

It may be that some of the advertisements on television are inappropriate for the time-slot. It may be that at times the ads are viewed like soft porn and teenage boys are the first to peruse the monthly mailing. But too sexy? That is a very strange comment coming from a company that has made a reputation for itself and pushed sales growth for years based on a foundation of sex appeal.

The Victoria's Secret chain is a division of the Limited Brands Inc. (NYSE: LTD) and Turney said she wants to bring a more sophisticated image back to the product line - hmm. I wonder if this is just a smoke screen to avoid criticism by conservatives in an election year.

• I can just hear the discussion in the board room: "There are some folks that think we have gone too far, and that we present an image that is just too darn sexy. All those in favor of being less sexy raise your hands"

This just does not seem possible, does it? LTD closed yesterday at $17.82 but is down over 9% in midday trading. Maybe Wall Street traders prefer more sexy, not less?

Gallery: Victoria's Secret Fashion Show 2007

UPDATE: LTD closed at $15.85 down $1.87.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I do not own shares of LTD.

We're too sexy ... per Victoria Secret's CEO originally appeared on BloggingStocks on Thu, 28 Feb 2008 16:20:00 EST. Please see our terms for use of feeds.

Continue reading 'Sexy' a four-letter word for Victoria's Secret chief

'Sexy' a four-letter word for Victoria's Secret chief originally appeared on BloggingStocks on Thu, 28 Feb 2008 13:54:00 EST. Please see our terms for use of feeds.

Limited (NYSE: LTD) closed at $17.82 Wednesday.

Bank of America says: "Q4 Beats on shares; Guidance implies a slow start to Q1."

LTD sells intimate apparel, personal care, women's clothes and beauty products through Limited, Limited Express, Victoria Secret & Bath & Body works. LTD reported operating income of $621 million. LTD says: "now expects February comps in the negative low double digit range verses its previous guidance for negative mid to high single digit comps."

LTD March option implied volatility of 48 is above its 26-week average of 42 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Option update: Limited volatility elevated into Q4 earnings originally appeared on BloggingStocks on Thu, 28 Feb 2008 10:35:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Merriman downgraded shares of Level 3 Communications Inc (NASDAQ: LVLT) to Neutral from Buy, as they believe the risks outweigh the rewards until the company can complete its integration and turn FCF positive.
• BT Group Plc (NYSE: BT) was downgraded to Equal Weight from Overweight at Lehman to reflect the company's slowing revenue growth.
• Bear downgraded Limited Brands Inc (NYSE: LTD) to Peer Perform from Outperform, citing the unfavorable macro backdrop, execution issues and management turnover.

• Societe Generale lowered its rating on GlaxoSmithKline Plc (NYSE: GSK) to Hold from Buy.
• Morgan Stanley downgraded Cox Radio Inc (NYSE: CXR) to Equal Weight from Overweight.
• UBS dropped Anglogold Ashanti Limited (NYSE: AU) to Neutral from Buy.

Analyst downgrades: LVLT, BT and LTD originally appeared on BloggingStocks on Fri, 08 Feb 2008 09:57:00 EST. Please see our terms for use of feeds.

Continue reading Insiders stock up on retail stocks -- the ultimate clearance?

Insiders stock up on retail stocks -- the ultimate clearance? originally appeared on BloggingStocks on Tue, 18 Dec 2007 13:45:00 EST. Please see our terms for use of feeds.

Gallery: Victoria's Secret Fashion Show 2007

Continue reading Victoria's Secret looks to pull in younger consumers

Victoria's Secret looks to pull in younger consumers originally appeared on BloggingStocks on Tue, 04 Dec 2007 11:00:00 EST. Please see our terms for use of feeds.

Limited Brands Inc. (NYSE: LTD), which operates Victoria's Secret and Bath & Body Works, has seen a surge in insider buying. With over 400,000 shares having been purchased by insiders over the last week or so, clearly they believe the stock is trading cheap. For investors looking for a cheap retail stock, Limited may be the play. Chairman and Chief Executive Leslie Wexner bought 280,000 shares between the previous Friday and last Tuesday, his first open-market purchases in over 13 years.

With a PE of 10.25 and a PEG of 1.01, the stock looks cheap, even with lower guidance. I think that international expansion is the key. Not only international sales but outsourcing the production to places like India are sure to keep costs low. With an expected economic slowdown in Q1 and Q2 2008, this may be a play for second half '08, as the economy will rebound and bring the consumer along with it. This is the kind of stock I would rather be a bit early in than late, because once the market starts to move Limited shares will surge.

Finally, it's one thing when a company announces and/or completes a stock buyback. They could do it for a host of reasons. But when insiders dip into their own pockets to buy shares, it usually is a pretty good sign the bottom is near.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. Disclosure: Writer has no position in any stock mentioned as of 12/03/07.

Large insider purchases at the Limited originally appeared on BloggingStocks on Mon, 03 Dec 2007 15:37:00 EST. Please see our terms for use of feeds.

The Wall Street Journal [subscription required] details some fascinating research on how activities in a CEO's private life affect his or her company's profitability or stock price. The most useful idea here is that investors can use Google Inc.'s (NASDAQ: GOOG) Google Earth to spot short selling opportunities.

One aspect of this research that did not surprise me was that if the CEO builds a huge home -- greater than 10,000 square feet -- the company's stock price declines. I have long noticed that when a company builds a huge new corporate headquarters building or names a sports stadium after itself, trouble often follows for investors in its stock. The reason for this link? The CEO is more focused on personal glorification than on expanding profits.

But what I found surprising and intrusive was that deaths in a CEO's family influence company profitability, according to a study by Danish researchers of 75,000 companies there. Here's the post-event change in return on assets of various deaths in a CEO's family:

Continue reading Using Google (GOOG) Earth to profit from the CEO edifice complex

Using Google (GOOG) Earth to profit from the CEO edifice complex originally appeared on BloggingStocks on Wed, 05 Sep 2007 09:05:00 EST. Please see our terms for use of feeds.

• The Chicago Board of Trade (NYSE: BOT) and Chicago Mercantile Exchange Holdings Inc (NYSE: CME) to hold a special shareholder meeting in Chicago about merging at 4pm.
• Take-Two Interactive Software (NASDAQ: TTWO) to hold a business update at 4:30pm.
• Alcoa Inc (NYSE: AA) to report Q2 earnings; conference call at 5pm.

• Electronic Entertainment Expo, or E3, to be held from July 10-July 13 in Santa Monica, California.
• The Home Depot Inc (NYSE: HD) to release a 2007 Sales Update at 9am.
• Sealy Corporation (NYSE: ZZ) to report Q2 earnings; conference call at 5pm.

Continue reading Market highlights for next week: Monthly sales numbers coming

Market highlights for next week: Monthly sales numbers coming originally appeared on BloggingStocks on Fri, 06 Jul 2007 16:00:00 EST. Please see our terms for use of feeds.

Express Stores, Limited not as sexy as Victoria's Secret ... and soap originally appeared on BloggingStocks on Tue, 15 May 2007 17:08:00 EST. Please see our terms for use of feeds.

Will players in the specialty retail field bring up solid March sales results this week? Who knows, but analysts expect this and, you know, analysts are always right (well, not exactly). At issue here is the expected strength of March sales in the specialty retail sector, reflecting a sales shift from April due to an earlier Easter. Who may suffer here? Specialty retailers of clothing, that's who.

OK, so what does that mean for April sales and beyond? A sour entry into late spring, perhaps? Who's in the cross-hairs of analysts in this sector? Try retailers like Talbot's (NYSE: TLB), Chico's FAS (NYSE: CHS), and Limited Brands (NYSE: LTD). Throw on that pile companies like Abercrombie & Fitch (NYSE: ANF), which may have seen lower sales due to bottoms (yeah, the "pants" kind) during this season shift that's happened in the last few weeks.

And the good news? While retailers like Pacific Sunwear (NASDAQ: PSUN), Hot Topic (NASDAQ: HOTT) and American Eagle Outfitters (NYSE: AEO) may have an above-average spring, sales are expected to slump over the summer season. Adjust positions accordingly I guess? Heh -- seasonality is the name of the game in clothing and much of specialty retail. The companies that can predict and adjust product lines as fast as possible are the winners.

Disclosure: I own HOTT shares as of 4-11-07.

What's left for the specialty retailers this year? originally appeared on BloggingStocks on Sat, 14 Apr 2007 12:40:00 EST. Please see our terms for use of feeds.

On February 28, 2007, Limited Brands (NYSE:LTD) reported respectable results for the year ending February 3, 2007. The press release indicates that year to year growth was at least satisfactory. Earnings per share were reported at $1.68 as compared to $1.62 for the previous year. There have been changes in LTD's inventory valuation accounting which you'll also need to consider. Net income before the cumulative affect of accounting changes was $675.0 million as compared to $666.4 previous year. Also to be considered is the fact that 2006 totals are based on a 53 week year whereas 2005 numbers are based on one week less than that.

Limited Brands reports a same store sales increase of 7% year over year, using a 53 week benchmark for both years. When excluding that 53rd week and with an adjustment for gift card breakage (cards with little expectation of redemption), the stated increase in same store sales is 9%.

Limited Brands has adjusted guidance for first quarter 2007 downward from the upper single digits towards the mid to lower single digits for comparable store sales due in part to extreme weather conditions which they state had negatively affected the usual Valentine's Day sales spike in both Victoria's Secret stores and also at Bath and Body Works. LTD guidance suggests 4% to 13% EPS growth for 2007 for total EPS in the range of $1.75 to 1.90.

Limited Brands share value is holding up respectably in the face of the current market down turn. For my previous predictions regarding the expanding bear market please read here and here and here.

Limited Brands reports respectable year end results originally appeared on BloggingStocks on Mon, 05 Mar 2007 12:04:00 EST. Please see our terms for use of feeds.