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NEW YORK — As Express began regaining ground and Bath & Body Works posted weak results, Victoria’s Secret led the way as a gift destination for Limited Brands Inc. during the holidays, helping the company deliver a 35.7 percent increase in fourth-quarter net profits.
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During Thursday morning’s trading session, shares of the retailer rose 5.2 percent to $24.61.
The Columbus-based specialty retailer earned $519.2 million, or $1.28 a share, in the three months ended Jan. 28, which compares with a profit of $382.5 million, or 87 cents, last year. Results in the quarter included a 25 cent gain related to the resolution of certain tax matters; a 4 cent gain from the recognition of gift card breakage, which refers to a gain related to anticipated unredeemed gift cards, and a 6 cent loss stemming from a change in how the company accounts for inventory.
Excluding these items, Limited Brands would have earned $425.9 million, or $1.05, in the quarter, which compares favorably with both analysts’ estimates for $1.01 and the company’s own earnings-per-share projection for $1.
Quarterly sales were up 6 percent at $3.54 billion, while consolidated same-store sales were up 3 percent, Limited Brands reported.
In the full year, the retailer earned $683.3 million, down 3.1 percent from $705.4 million, last year. On an EPS basis, however, the company earned $1.66, up from $1.47, last year. The most recent year’s profit results included various gains totaling 32 cents. Excluding the items, Limited Brands would have earned $1.34, which was ahead of analysts’ estimates for $1.30.
Annual sales were up 3 percent at $9.7 billion, while consolidated same-stores sales were down 1 percent, the company said.
Commenting on the quarter, Leslie H. Wexner, chairman and chief executive officer of Limited Brands, said in a late Wednesday statement: “Victoria’s Secret, our largest brand, had a solid performance, driven by Pink and the direct business. The apparel segment improved profitability, driven primarily by an improved performance at Express. Holiday results at Bath & Body Works did not meet our expectations.”
Looking ahead, Limited Brands expects to report flat EPS of 16 cents in the first quarter. In the full year, the company anticipates EPS of $1.40 to $1.50.
Analysts are expecting a profit of 7 cents in the first quarter and $1.47 in the year.
Shares of Limited Brands ended Wednesday trading up 0.5 percent to $23.41. The company will hold a quarterly conference call with Wall Street today.