SAN FRANCISCO (Reuters) - Limited Brands,LTD.N owner of the Victoria’s Secret and Bath & Body Works chains, posted a higher than expected quarterly profit on Wednesday, sending shares up 3.5 percent after hours.
The retailer said third-quarter net profit was $14.85 million, or 5 cents per share, from $4.12 million, or 1 cent per share, a year earlier.
Excluding the tax benefit, the company earned 2 cents per share. That was above the 1 cent per share loss expected, on average, by analysts, according to Thomson Reuters I/B/E/S.
Revenue fell 3.5 percent to $1.78 billion. Same-store sales, a key gauge of retail strength, fell 2 percent in the quarter.
Limited has struggled with sales for more than a year as U.S. consumers have cut their spending for nice-to-have items such as lingerie and bath products. But the company has cut costs and lowered inventory to compensate.
For the fourth quarter, Limited said it expects earnings per share to range between 71 cents to 86 cents, with full-year adjusted earnings between 93 cents to $1.08 per share.
Shares rose 3.45 percent to $18.90 after closing at $18.27 on the New York Stock Exchange.
Reporting by Alexandria Sage, editing by Leslie Gevirtz