Limited 4Q earnings rise
Retailer and Intimate Brands unit beat estimates on strong holiday sales.
February 28, 2002: 8:03 a.m. ET
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NEW YORK (CNN/Money) - Limited Inc. and its Intimate Brands unit said Thursday strong holiday sales boosted fourth-quarter profits ahead of the prior year's results and Wall Street estimates.
Columbus, Ohio-based Limited, which owns 84 per cent of Intimate Brands, earned $326.5 million, or 75 cents a share, up from $242.6 million, or 55 cents per share, a year earlier.
Analysts expected earnings of 73 cents a share, according to research firm First Call.
Limited posted fourth-quarter sales of $3.14 billion, down from $3.26 billion the prior year. Excluding an extra week in the fourth quarter of 2000, the company said revenue increased 1 percent in the fourth quarter of 2001.
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Intimate Brands, which operates Victoria's Secret, Bath & Body Works and White Barn Candle Co., posted a fourth-quarter profit of $299.9 million, or 61 cents per share, up from $227.5 million, or 46 cents per share, a year earlier.
Wall Street expected 59 cents a share, according to First Call.
Intimate Brands reported fourth-quarter revenue of $1.94 billion, flat with a year ago. The company said that excluding an extra week in 2000, sales increased 4 percent.
"Inventory discipline across the brands coupled with an outstanding holiday performance at Victoria's Secret led to a 36 percent increase in fourth-quarter earnings per share at Limited Inc.," Chairman and CEO Leslie Wexner said.
Looking forward, the companies issued the same guidance, saying the economic and retail environment look challenging for 2002, particularly in the first half. For the full year, the companies see earnings growth in the low to mid-single digit percentage range compared with 2001.
Analysts expect Limited to earn 6 cents a share in the first quarter and 90 cents per share in fiscal 2003. Wall Street sees Intimate Brands earning 8 cents a share in the first quarter and 84 cents per share in the year, according to First Call.
Shares of Limited (LTD: Research, Estimates) fell 36 cents Wednesday to close at $18.29 and Intimate Brands (IBI: Research, Estimates) fell 20 cents to $19.70. 
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