Attached files
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| 8-K - CURRENT REPORT - Bath & Body Works, Inc. | d8k.htm |
Exhibit 99.1
LIMITED BRANDS REPORTS JULY 2010 SALES AND RAISES SECOND
QUARTER EARNINGS GUIDANCE
Columbus, Ohio, Aug. 5, 2010 — Limited Brands, Inc. (NYSE: LTD) reported a comparable store sales increase of 12 percent for the four weeks ended July 31, 2010, compared to the four weeks ended Aug. 1, 2009. The company reported net sales of $619.7 million for the four weeks ended July 31, 2010, compared to net sales of $556.2 million last year.
The company reported a comparable store sales increase of 7 percent for the second quarter ended July 31, 2010, compared to the second quarter ended Aug. 1, 2009. The company reported net sales of $2.243 billion for the second quarter ended July 31, 2010, compared to sales of $2.067 billion last year.
The company reported a comparable store sales increase of 8 percent for the 26 weeks ended July 31, 2010, compared to the 26 weeks ended Aug. 1, 2009. The company reported net sales of $4.174 billion for the 26 weeks ended July 31, 2010, compared to sales of $3.792 billion last year.
The company now expects to report second quarter adjusted earnings per share of $0.34 to $0.36 cents versus its previous guidance of $0.27 to $0.32 cents.
To hear further commentary provided on Limited Brands’ prerecorded July sales message, call 1-866-639-7583 (1-866-NEWS-LTD), or log onto www.Limitedbrands.com for an audio replay. The company will report its second quarter earnings results after the close of the market on Aug. 18 and will conduct its second quarter earnings call at 9 a.m. Eastern on Aug. 19.
ABOUT LIMITED BRANDS:
Limited Brands, through Victoria’s Secret, Pink, Bath & Body Works, La Senza, C.O. Bigelow, White Barn Candle Co. and Henri Bendel, is an international company. The company operates 2,669 specialty stores in the United States and its brands are sold in more than 700 company-operated and franchised additional locations world-wide. The company’s products are also available online at www.VictoriasSecret.com, www.BathandBodyWorks.com, www.HenriBendel.com and www.LaSenza.com.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
Limited Brands, Inc. cautions that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this press release or the July sales call involve risks and uncertainties and are subject to change based on various factors, many of which are beyond our control. Accordingly, our future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Words such as “estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “planned,” “potential” and similar expressions may identify forward-looking statements. Risks associated with the following factors, among others, in some cases have affected and in the future could affect our financial performance and actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements included in this press release or the July sales call:
| • | general economic conditions, consumer confidence and consumer spending patterns; |
| • | the global economic crisis and its impact on our suppliers, customers and other counterparties; |
| • | the impact of the global economic crisis on our liquidity and capital resources; |
| • | the dependence on a high volume of mall traffic and the possible lack of availability of suitable store locations on appropriate terms; |
| • | the seasonality of our business; |
| • | our ability to grow through new store openings and existing store remodels and expansions; |
| • | our ability to expand into international markets; |
Three Limited Parkway Columbus, Ohio 43230 www.LimitedBrands.com
| • | independent licensees; |
| • | our direct channel business; |
| • | our failure to protect our reputation and our brand images; |
| • | our failure to protect our trade names, trademarks and patents; |
| • | market disruptions including severe weather conditions, natural disasters, health hazards, terrorist activities, financial crises, political crises or other major events, or the prospect of these events; |
| • | stock price volatility; |
| • | our failure to maintain our credit rating; |
| • | our ability to service our debt; |
| • | the highly competitive nature of the retail industry generally and the segments in which we operate particularly; |
| • | consumer acceptance of our products and our ability to keep up with fashion trends, develop new merchandise, launch new product lines successfully, offer products at the appropriate price points and enhance our brand image; |
| • | our ability to retain key personnel; |
| • | our ability to attract, develop and retain qualified employees and manage labor costs; |
| • | our reliance on foreign sources of production, including risks related to: |
| • | political instability; |
| • | duties, taxes and other charges on imports; |
| • | legal and regulatory matters; |
| • | volatility in currency and exchange rates; |
| • | local business practices and political issues; |
| • | potential delays or disruptions in shipping and related pricing impacts; |
| • | the disruption of imports by labor disputes; and |
| • | changing expectations regarding product safety due to new legislation. |
| • | the possible inability of our manufacturers to deliver products in a timely manner or meet quality standards; |
| • | fluctuations in energy costs; |
| • | increases in the costs of mailing, paper and printing; |
| • | self-insured risks; |
| • | our ability to implement and sustain information technology systems; |
| • | our failure to comply with regulatory requirements; |
| • | tax matters; and |
| • | legal and compliance matters. |
We are not under any obligation and do not intend to make publicly available any update or other revisions to any of the forward-looking statements contained in this press release or the July sales call to reflect circumstances existing after the date of this press release or to reflect the occurrence of future events even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized. Additional information regarding these and other factors can be found in “Item 1A. Risk Factors” in our 2009 Annual Report on Form 10-K.
For further information, please contact:
| Limited Brands: | ||||||
| Investor Relations | Media Relations | |||||
| Amie Preston | Tammy Roberts Myers | |||||
| (614) 415-6704 | (614) 415-7072 | |||||
| apreston@limitedbrands.com | extcomm@limitedbrands.com |
Three Limited Parkway Columbus, Ohio 43230 www.LimitedBrands.com
LIMITED BRANDS
JULY 2010
Comparable Store Sales Increase (Decrease):
| July 2010 |
July 2009 |
Second Quarter 2010 |
Second Quarter 2009 |
Year-to-Date 2010 |
Year-to-Date 2009 |
|||||||||||||
| Victoria’s Secret Stores |
12 | % | (9 | %) | 13 | % | (12 | %) | 12 | % | (11 | %) | ||||||
| La Senza |
(4 | %) | (9 | %) | 0 | % | (11 | %) | 1 | % | (12 | %) | ||||||
| Bath & Body Works |
15 | % | 0 | % | 0 | % | (5 | %) | 3 | % | (4 | %) | ||||||
| Limited Brands |
12 | % | (7 | %) | 7 | % | (9 | %) | 8 | % | (9 | %) |
Total Sales (Millions):
| Second Quarter 2010 |
Second Quarter 2009 |
Year-to-date 2010 |
Year-to-date 2009 | |||||||||
| Victoria’s Secret Stores |
$ | 955.3 | $ | 837.7 | $ | 1,783.4 | $ | 1,564.5 | ||||
| Victoria’s Secret Direct |
391.0 | 359.4 | 741.2 | 676.8 | ||||||||
| La Senza |
101.8 | 109.1 | 187.2 | 190.1 | ||||||||
| Total Victoria’s Secret |
$ | 1,448.1 | $ | 1,306.2 | $ | 2,711.8 | $ | 2,431.4 | ||||
| Bath & Body Works |
$ | 536.5 | $ | 533.5 | $ | 966.8 | $ | 936.0 | ||||
| Total Other |
$ | 257.9 | $ | 226.9 | $ | 495.4 | $ | 424.4 | ||||
| Limited Brands |
$ | 2,242.5 | $ | 2,066.6 | $ | 4,174.0 | $ | 3,791.8 | ||||
Total Stores:
| Stores Operating at 1/30/10 |
Year-to-date | Stores Operating at 7/31/10 | |||||||
| Opened | Closed | ||||||||
| Victoria’s Secret Stores |
1,040 | 4 | (5 | ) | 1,039 | ||||
| Bath & Body Works |
1,627 | 2 | (10 | ) | 1,619 | ||||
| Henri Bendel |
11 | — | — | 11 | |||||
| Total United States |
2,678 | 6 | (15 | ) | 2,669 | ||||
| La Senza Canada |
258 | — | (3 | ) | 255 | ||||
| Bath & Body Works Canada |
31 | 8 | — | 39 | |||||
| Victoria’s Secret Canada |
4 | 2 | — | 6 | |||||
| Total Limited Brands |
2,971 | 16 | (18 | ) | 2,969 | ||||
Three Limited Parkway Columbus, Ohio 43230 www.LimitedBrands.com