Limited Brands, Inc. Earnings: Company Enjoys Fifth Straight Quarter of Double-Digit Growth

S&P 500 (NYSE:SPY) component Limited Brands, Inc. (NYSE:LTD) reported its results for the first 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 First Quarter

Results: Net income for Limited Brands, Inc. rose to $165.2 million (50 cents/share) vs. $112.5 million (34 cents/share) in the same quarter a year earlier. A rise of 46.8% from the year earlier quarter.

Revenue: Rose 15% to $2.22 billion YoY.

Actual vs. Wall St. Expectations: LTD reported adjusted net income of of 40 cents/share. By that measure, the company beat the mean estimate of 39 cents/share. Estimates ranged from 36 cents per share to 43 cents per share.

Quoting Management: Leslie H. Wexner, chairman and chief executive officer of Limited Brands, stated, “With a disciplined approach to managing our business, we delivered record first quarter results. I am proud of our team’s focus on the fundamentals and brand building…we will strive to get even 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 38% from the year earlier quarter. Over that span, margins have grown on average 2.7 percentage points per quarter on a year-over-year basis.

The company has now seen net income rise in three-straight quarters. In the fourth quarter of the last fiscal year, net income rose 27.2% and in the third quarter of the last fiscal year, the figure rose more than fourfold.

Revenue has risen the past four quarters. Revenue increased 12.8% to $3.46 billion in fourth quarter of the last fiscal year. The figure rose 11.6% in third quarter of the last fiscal year from the year earlier and climbed 8.5% in second 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).

Stock Performance: Shares of LTD are down 1% from the previous close.

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