Here’s Why Limited Brands’ Earnings Beat Isn’t Enough for Shareholders

Limited Brands (NYSE:LTD) posted a quarterly profit that topped Wall Street’s predictions, but its shares fell after its forecast for the current quarter fell short of expectations. For the current quarter, Limited, the owner of brands like Victoria’s Secret and Bath & Body Works, is now projecting profit between 40 cents and 45 cents, below the average 50-cent estimate. For the full year, the company sees earnings per share of $2.63 to $2.83, with the upper limit matching the $2.83 consensus.

Earnings Report: Limited Brands Earnings Cheat Sheet: Net Income Drops by Double-Digits.

Shares were down $1.87, or almost 4 percent, at $46.09, in late trading.

The company barely beat estimates for the first quarter, with net income declining to $124.6 million, or 41 cents per share, from $165.2 million, or 50 cents per share, in the same quarter last year. Consensus estimates had been for 40 cents per share.

Revenue fell to $2.15 billion, though that included $214 million attributable to the third-party apparel sourcing business, which was sold in November 2011. Revenue just about beat projections of $2.14 billion.

Same-store sales rose 7 percent year over year.

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