Limited same-store sales worse than expected

Thu Jun 5, 2008 12:26pm EDT
 
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NEW YORK (Reuters) - Limited Brands Inc (LTD.N), operator of the Victoria's Secret and Bath & Body Works chains, on Thursday said same-store sales fell 6 percent in May, worse than analysts had expected.

Analysts on average had forecast a same-store sales decline of 5.5 percent, according to Thomson Reuters data.

Total sales fell to $661.3 million in the four weeks that ended May 31, from $774.7 million a year earlier.

The company, known for its sexy lingerie ads that feature supermodels, said last month that it expected same-store sales to fall at a mid-to-high single-digit percentage rate in the current second quarter, and at a low single-digit rate for the year.

In the 17 weeks that ended May 31, same-store sales fell 7 percent.

Limited has struggled with fewer shoppers in its stores as U.S. consumers cut back on shopping mall trips and spend less amid a weak economy and high gasoline prices.

To offset lower sales, the company has been tightening inventory and cutting back on expenses.

For June it forecast a same-store sales decline in a mid- to high-single-digit percentage range.

(Reporting by Aarthi Sivaraman and Martinne Geller; Editing by Lisa Von Ahn and Maureen Bavdek)

 

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