Limited Brands 4Q Earnings Drop 15 Percent

Limited Brands Inc., Columbus, Ohio, reported that its earnings for the fourth quarter fell 15 percent. Net income dropped to $439.8 million, compared to $519.2 million last year, while net sales rose to $4.025 billion from $3.542 billion last year. Comparable-store sales for the quarter increased 8 percent, specifically a 10 percent rise at Victoria's Secret and a 9 percent increase at Bath & Body Works. Same-store sales among the apparel brands rose only 1 percent. The fourth quarter had one extra week this year, and discounting that extra week and a $30.4 million gain the company reported a year ago from unused gift cards, the company said sales would have risen 10 percent. Earnings for the fiscal year dropped to $675.7 million, compared with $683.2 million a year ago. The company reported a comparable-stores sales increase of 7 percent for the year, while net sales rose to $10.671 billion, compared to $9.699 billion the prior year.