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UPDATE 1-Limited Brands beats Street, outlook disappoints
May 19, 2010 / 8:54 PM / in 7 years

UPDATE 1-Limited Brands beats Street, outlook disappoints

* Q1 EPS 25 cents vs Street’s 19 cents

* Q1 revenue up 11.6 percent

* Sees adjusted Q2 EPS 27 cents to 32 cents

* Shares down 5 percent after hours

SAN FRANCISCO, May 19 (Reuters) - Limited Brands Inc LTD.N, the operator of the Victoria’s Secret and Bath & Body Works chains, posted better-than-expected quarterly net income on Wednesday, but the midpoint of a profit outlook fell short of expectations, sending the company’s shares down 5 percent.

Net income in Limited’s first quarter ended May 1 was $112.5 million, or 34 cents per share, from $2.6 million, or 1 cent per share, a year earlier.

Excluding a gain from its former Express chain, the company earned 25 cents per share.

Analysts, on average, had been expecting earnings of 19 cents per share, according to Thomson Reuters I/B/E/S.

Revenue rose 11.6 percent to $1.93 billion from $1.73 billion, in line with Wall Street estimates, while same-store sales rose 10 percent.

The company has worked steadily to improve margins in a difficult sales environment for lingerie and bath products, but recent launches and better mall traffic helped boost recent results.

Looking ahead, Limited expects second-quarter adjusted earnings to range between 27 cents and 32 cents per share, compared to the 31 cents expected, by Wall Street.

Its shares fell 5 percent to $23.20 after closing at $24.49 on the New York Stock Exchange. (Reporting by Alexandria Sage; editing by Andre Grenon)

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