USA: Limited Brands Reports Third Quarter 2008 Earnings

Limited Brands, Inc. reported 2008 third quarter results. Earnings per share for the third quarter ended Nov. 1, 2008, were $0.01 compared to $0.03 last year. Third quarter operating income was $41.2 million compared to $61.1 million last year, and net income was $4.2 million compared to $12.1 million last year.

The above 2007 results include pre-tax gains of $24.5 million, or $0.04 per share, related to asset sales.

Excluding this item, third quarter earnings per share were $0.01 compared to a loss of $0.01 last year. Third quarter operating income was $41.2 million compared to $36.6 million last year; and net income was $4.2 million compared to a net loss of $2.4 million last year.

Comparable store sales for the third quarter decreased 7 percent, and net sales were $1.842 billion compared to $1.923 billion last year.

The company expects 2008 fourth quarter earnings per share to be $0.85 to $1.00 compared to $0.94 per share last year, which excluded 2007 significant favorable items of $0.16 per share related to gift card breakage and income taxes.

For 2008, the company expects earnings per share of $1.20 to $1.35, excluding first half significant net favorable items of $0.20 per share, compared to $1.21 per share last year, which excluded 2007 significant net favorable items of $0.68 per share as described in previous.

Limited Brands will conduct its third quarter earnings call at 9 a.m. Eastern time on Thursday, Nov. 20.

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 3,021 specialty stores.

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