Limited Brands, Inc. Earnings Cheat Sheet: Fifth Straight Quarter of Double-Digit Growth

S&P 500 (NYSE:SPY) component Limited Brands, Inc. (NYSE:LTD) reported its results for the second quarter. Limited Brands, Inc. is a specialty retailer of women’s apparel, beauty and personal care products and accessories operating under various trade names.

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Limited Brands Earnings Cheat Sheet for the Second Quarter

Results: Net income for Limited Brands, Inc. rose to $231.2 million (73 cents per share) vs. $178 million (54 cents per share) in the same quarter a year earlier. This marks a rise of 29.9% from the year earlier quarter.

Revenue: Rose 9.6% to $2.46 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: LTD reported adjusted net income of 48 cents per share. By that measure, the company beat the mean estimate of 46 cents per share. Analysts were expecting revenue of $2.44 billion.

Quoting Management: Leslie H. Wexner, chairman and chief executive officer of Limited Brands, stated, “We’re pleased with our second quarter performance. Our focus on managing inventory and expenses conservatively and staying agile yielded more full-priced selling and record results. As we enter the fall season, we will remain focused on our customers, and we see opportunity to continue to do better.”

Key Stats:

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded two percentage points to 36.7% from the year earlier quarter. Over that span, margins have grown on average 2.4 percentage points per quarter on a year-over-year basis.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 46% and in the fourth quarter of the last fiscal year, the figure rose 27.2%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by one cent in the first quarter, by one cent in the fourth quarter of the last fiscal year, and by one cent in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 14.8% to $2.22 billion in the first quarter. The figure rose 12.8% in the fourth quarter of the last fiscal year from the year earlier and climbed 11.6% in the third quarter of the last fiscal year from the year-ago quarter.

Competitors to Watch: New York & Company, Inc. (NYSE:NWY), Express, Inc. (NYSE:EXPR), The Wet Seal, Inc. (NASDAQ:WTSLA), Christopher & Banks Corp. (NYSE:CBK), Chico’s FAS, Inc. (NYSE:CHS), Ann Inc (NYSE:ANN), Coldwater Creek Inc. (NASDAQ:CWTR), Ascena Retail Group Inc (NASDAQ:ASNA), Charming Shoppes, Inc. (NASDAQ:CHRS), and The Talbots, Inc. (NYSE:TLB).

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

(Source: Xignite Financials)