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Limited, Intimate warn
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August 23, 2001: 7:42 a.m. ET
Apparel retailers both see breakeven 3Qs after posting 2Q income
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NEW YORK (CNNfn) - Apparel retailer Limited Inc. Thursday reported a sharp drop in second- quarter earnings on declining sales, and warned it will miss third-quarter and full-year estimates. Victoria's Secret parent Intimate Brands, majority-owned by Limited, also warned of a breakeven third quarter.
For the latest quarter, Limited (LTD: down $1.57 to $13.63, Research, Estimates) posted earnings of $77 million, or 8 cents a share, down from $157.1 million, or 17 cents a share, a year earlier. Analysts on average expected a profit of 8 cents a share, according to earnings tracker First Call.
The Columbus, Ohio-based retailer also said it now expects to break even in the third quarter instead of earning the 9 cents consensus forecast and anticipates fiscal 2002 earnings per share to be "down significantly" from the previous year. Analysts had forecast full-year earnings of 86 cents a share, down from 97 cents the prior year, according to First Call.
Limited's stock sank $1.63 to $13.57 in midday trading Thursday following the report.
Meanwhile, Intimate Brands (IBI: down $1.55 to $13.06, Research, Estimates) , the operator of Victoria's Secret and Bath & Body Works, posted lower second-quarter earnings Thursday yet beat Wall Street estimates by 2 cents a share even though sales remained flat with a year earlier.
The company also warned it expects to break even in the third quarter, compared with forecasts for 6 cents a share earnings, and that full-year results will be significantly lower. Analysts expected earnings of 80 cents a share, compared with 88 cents the previous year.
Intimate Brands reported operating income of $178.4 million, or 14 cents a share, down from $286.9 million, or 20 cents a share, a year earlier. Analysts forecast 12 cents a share, according to First Call.
The company's shares slid $1.59 to $13.02 in midday trading Thursday.
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Sales were flat at about $2.2 billion. 
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Limited
Intimate Brands
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