Citigroup downgraded LTD from a "Buy" to a "hold" after observing that its Victoria's Secret sales have substantially declined.
On November 20, 2008 LTD reported that it's same-store sales were down 7% from last year's Q3 numbers. Its Q3 net income fell to $4.2 million, down from $12.1 million in the same quarter last year.
Limited Brands reported negative results for June 2008, as net sales fell 19% and comparable store sales declined 9%, as the sluggish U.S. economy led shoppers away from high-priced retailers, especially stores that sell non-necessity products like many of Limited Brands' operations.
Limited Brands reported a 15% decrease in net sales in May 2008, and a 6% decrease in comparable store sales.
Limited Brands reported an 8% decrease in same store sales for the first quarter of fiscal 2008, whereas the company had previously anticipated flat (0%) same store sales growth in the quarter. However, the company's earnings guidance for Q2 and full year FY08 meet analysts' estimates, which expect an improvement in sales and earnings through the rest of the year.
Limited Brands reported net sales of 1.9 billion (down from 2.1 billion last year) for the fall quarter, due in part to the recent divestment of its apparel business and also to the weak retail environment. Unseasonably warm weather caused a comp store sales decline of 3% for the quarter, and company executives announced that they would be lowering earnings guidance for the winter quarter from flat comp store sales growth to negative. The company also plans to artifically stem demand for its Victoria's Secret products ths holiday season by reducing circulation of its prominent lingerie catalog.
LTD announces that Vice Chairman and Chief Operating Officer Len Schlesinger has decided to resign. Schlesinger had been with the company since 1999.
In an effort to divest itself of troublesome apparel businesses in a weak clothing retail environment, Limited Brands sells a 75% stake each in its Express and Limited Stores ("The Limited") apparel businesses to Golden Gate Capital. The company expresses its hopes of being able to now concentrate more fully on its more profitable intimates and bath/body consumer products divisions.
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