UNITED STATES: Limited Brands Announces 49 Percent Increase
COLUMBUS, Ohio, -- Limited Brands, Inc. reported 2009 fourth quarter and full-year results.
Fourth Quarter Results
Adjusted earnings per share for the fourth quarter ended Jan. 30, 2010, which exclude certain significant items as detailed below, increased 49 percent to $1.01 compared to $0.68 for the quarter ended Jan. 31, 2009. Fourth quarter adjusted operating income was $585.5 million compared to $390.7 million last year, and adjusted net income was $332.8 million compared to $218.9 million last year.
Including the significant items below, reported fourth quarter earnings per share were $1.08 compared to $0.05 last year; operating income was $585.5 million compared to $153.1 million last year; and net income was $356.1 million compared to $16.1 million last year.
Significant items are as follows:
In 2009 (totaling to a benefit $0.07 per share):
-- An income tax benefit of $23.3 million, primarily related to the
reorganization of certain foreign subsidiaries.
In 2008 (totaling to a net charge of $0.63 per share):
-- A pre-tax non-cash impairment charge of $215.0 million, or $0.63 per
share, to reduce the carrying value of La Senza goodwill and other
intangible assets;
-- A pre-tax charge of $22.6 million, or $0.04 per share, for severance
related to the reduction of roughly 10 percent of home office
headcount; and
-- A tax benefit of $15.0 million, or $0.05 per share, primarily related
to certain discrete foreign and state income tax items.
The company reported a comparable store sales increase of 1 percent for the fourth quarter ended Jan. 30, 2010. Net sales were $3.063 billion compared to net sales of $2.991 billion last year.
Full-Year Results
Adjusted earnings per share for the year ended Jan. 30, 2010, which exclude certain significant items, increased 17 percent to $1.23 compared to $1.05 for the year ended Jan. 31, 2009. Adjusted 2009 operating income was $858.3 million compared to $717.5 million in 2008, and adjusted net income was $401.8 million compared to $353.4 million in 2008.
Including significant items, reported 2009 full-year earnings per share were $1.37 compared to $0.65 in 2008; operating income was $867.7 million compared to $588.9 million in 2008; and net income was $447.9 million compared to $220.1 million in 2008.
At the conclusion of this press release is a reconciliation of reported to adjusted results, including a description of the significant items.
The company reported a comparable store sales decrease of 4 percent for the year ended Jan. 30, 2010. Net sales were $8.632 billion compared to net sales of $9.043 billion last year.
2010 Outlook
Chairman and CEO Leslie Wexner stated, "The economic environment in 2009 was very challenging. We managed inventory, expenses and capital conservatively. We focused on executing with flexibility and speed, and those disciplines helped us achieve better results in the fourth quarter. We made good progress, but we recognize there is more to do and are very focused on continued improvement."
The company's earnings forecast is based on various assumptions which will be discussed more fully on the earnings conference call. The company expects 2010 full-year earnings per share to be between $1.40 and $1.60 per share, including earnings per share between $0.05 per share and $0.10 per share in the first quarter.
The company expects to report a February comparable store sales increase in the high single to low double digit range, versus its previous estimate of roughly flat.
ABOUT LIMITED BRANDS:
Limited Brands, through Victoria's Secret, Pink, Bath & Body Works, C.O. Bigelow, La Senza, White Barn Candle Co. and Henri Bendel, presently operates 2,971 specialty stores.
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Source: PR • News Courtesy: BharatTextile.com
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