Photo: via Victoria’s Secret
COLUMBUS, Ohio (AP) — Limited Brands Inc., the parent of Victoria’s Secret, said Wednesday its fourth-quarter profit fell 21 per cent as it took a hefty restructuring charge for an asset write-down and some store closures.The company’s earnings adjusted for special items topped Wall Street expectations for the recently concluded quarter. But its outlook for earnings in the current quarter was below expectations and Limited Brands’ shares fell in extended trading.
Net income for the three months ended Jan. 28 was $359.4 million, or $1.17 per share, down from $452.3 million, or $1.36 per share, a year earlier.
The results for the latest quarter included a pre-tax charge of $256.1 million, or 74 cents per share, related to intangible asset impairment and restructuring charges, including store closures, at its smaller La Senza lingerie chain. They also included a pre-tax gain of $110.8 million, or 32 cents per share, related to the sale of the company’s third-party apparel-sourcing business.
Excluding one-time items, the company said adjusted earnings were $1.50 per share in the latest quarter, up 19 per cent from a year earlier.
Revenue was $3.52 billion, up from $3.46 billion at the company that also runs Bath & Body Works and Henri Bendel stores.
Analysts surveyed by FactSet had estimated earnings of $1.46 per share on revenue of $3.52 billion.
Revenue at stores open at least a year was 7 per cent higher in the fourth quarter than in the same period a year earlier.
For the full year, Limited Brands said it had net income of $850.1 million, or $2.70 per share, up from $804.8 million, or $2.42 per share, in fiscal 2010. Revenue was $10.4 billion, up 8 per cent from $9.6 billion.
The company said it expects earnings per share between 35 cents and 40 cents a share in the first quarter. Analysts had been expecting 44 cents a share.
Shares in the company fell $1.53, or 3.4 per cent, to $43.95 in after-hours trading. During the regular session, they decline 19 cents to $45.48.