Limited's Q4 profit plummets 21% on restructuring charge
COLUMBUS, OHIO — Profits fell at Limited Brands, thanks to a large restructuring charge. The company reported Wednesday that fourth quarter profit dropped 21% to $359.4 million, from $452.3 million in the year-ago period.
The parent to Victoria’s Secret, Bath & Body Works and Henri Bendel was negatively impacted by a large restructuring charge for an asset write-down and closures of some of its La Senza lingerie stores. Last quarter’s profit decrease breaks a streak of four consecutive quarters of year-over-year profit increases.
Revenue rose to $3.52 billion from $3.46 billion, matching Wall Street expectations. Same-store sales increased 7%.
For the full year, Limited Brands reported a profit of $850.1 million, up from $804.8 million in fiscal 2010. Revenue rose 8% to $10.4 billion.
The company said it currently expects 2012 full-year earnings per share to be between $2.60 and $2.80, including earnings per share between 35 cents and 40 cents in the first quarter. The company expects to report a February comparable store sales increase in the mid-to-high single-digit range, versus its previous estimate of up low single digits.