BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Limited Brands sees a sexy profit in Q1]]>http://www.bloggingstocks.com/2009/05/21/limited-brands-sees-a-sexy-profit-in-q1/http://www.bloggingstocks.com/2009/05/21/limited-brands-sees-a-sexy-profit-in-q1/http://www.bloggingstocks.com/2009/05/21/limited-brands-sees-a-sexy-profit-in-q1/#commentsFiled under: , , , , ,

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.

Read | Permalink | Email this | Comments]]>abercrombie and fitchAEOamerican eagle outfittersANFbath and body worksclothingfashionfeaturedGapGPSJCPJCPenneylimited brandsLimitedBrandsLTDmallPenneysPinkretailvictorias secretThu, 21 May 2009 08:45:00 EST<![CDATA[Express Stores, Limited not as sexy as Victoria's Secret ... and soap]]>http://www.bloggingstocks.com/2007/05/15/express-stores-limited-not-as-sexy-as-victorias-secret-and/http://www.bloggingstocks.com/2007/05/15/express-stores-limited-not-as-sexy-as-victorias-secret-and/http://www.bloggingstocks.com/2007/05/15/express-stores-limited-not-as-sexy-as-victorias-secret-and/#commentsFiled under: , , , ,

victoria's secret is just way more sexyMega-trendy retailer Limited Brands (NYSE: LTD) announced the sale today of its Express Stores unit to private equity firm Golden Gate Capital, and in the same breath said it was evaluating the options for its Limited Stores segment -- the brand the company derives its name from. Despite the surface inscrutability of this decision (why sell the company's titular brands, the ones that are growing in gross profit while the company's other units are slipping bigtime?), it's one that analysts have been predicting for a while given that CEO Leslie Wexner has been hyping his Victoria's Secret unit as a "megabrand" upon which Limited's future prospects would hinge. Both Victoria's Secret and soap-and-lotion retailer Bath & Body Works, he insists, depend on products whose sales are more predictable than those of clothing.

While that's certainly true, it's also true that the profit margins for the cheap, trendy clothing sold by the company's Express and Limited stores are growing while the rest of the company's brands are falling. Today the company announced that it is revising its outlook for Q1 2007 downward significantly due to poorer-than-expected sales and merchandise margins at Victoria's Secret. After slashing the outlook from 25-28 cents a share to 12-14 cents a share, the stock was down significantly, $1.23 or 4.5% to $26.18, although after-market trading shows some nice recovery.

Perhaps the prediction isn't so easy, but the fact remains that the profit margins and same-store sales growth is a lot better on lemongrass- and magnolia-scented lotion than tank tops and skinny jeans. While Victoria's Secret and Bath & Body Works regularly record operating profit in the 20-30% range, a good quarter for Express and Limited stores hovers between 5% and 6%. Lingerie is sexy, and soap is way, way sexier -- and Limited Brands has picked this clean, sweet-smelling horse to ride for now.

As of February 3, 2007, Limited had 658 Express stores and 260 Limited stores; 1,326 stores in the Victoria's Secret unit (which includes the La Senza brand); and 1,546 Bath & Body Works stores.

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.

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