UPDATE 1-Limited Brands profit down, lowers 4th-qtr outlook

(Adds estimates, outlook, sales)

LOS ANGELES, Nov 20 (Reuters) - Limited Brands Inc (LTD.N) posted on Tuesday a sharply lower quarterly net profit, below analysts' estimates, due to declining sales, and the retailer lowered its earnings outlook for the current quarter.

The parent of Victoria's Secret and Bath & Body Works, which has battled declining traffic at its stores this fall, said third-quarter net profit fell to $12.1 million, or 3 cents per share, from $23.5 million, or 6 cents per share, a year earlier.

Stripping away a pre-tax gain of 4 cents per share related to asset sales, Limited posted a net loss of 1 cent per share, which was a penny short of the average analyst target, according to Reuters Estimates.

Total sales fell 9 percent to $1.92 billion and same-store sales, a key gauge of retail performance measuring sales at stores open at least a year, fell 3 percent in the quarter, hurt by decreases in September and October.

This summer, Limited Brands shed underperforming apparel lines to focus on Victoria's Secret and Bath & Body Works.

To date, the company has sounded an update tone about the holidays, even though Wall Street has worried about how much consumers will spend in a season marked by high fuel prices, a housing slump and fallout from the credit crisis.

Last month, Chief Executive Leslie Wexner told analysts he felt "very confident and I think very much at ease going into this holiday season."

Limited lowered its fourth-quarter outlook, saying it now expects earnings per share of between 90 cents and $1.05. In August, the company said it was comfortable with a First Call earnings estimate of $1.18 for the fourth quarter.

Analysts, on average, have been expecting fourth-quarter earnings of $1.08, according to Reuters Estimates.

Limited said the lowered outlook was due to issues related to the opening of a new distribution center for the Victoria's Secret direct-to-consumer division as well as a challenging retail environment.

Shares closed at $17.53 on the New York Stock Exchange.

(Reporting by Alexandria Sage, editing by Braden Reddall)

((Email: alexandria.sage@reuters.com +1-213-955-6781)) Keywords: LIMITEDBRANDS RESULTS/

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