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Limited Brands Sees Second-Quarter Declines

Although third quarter EPS is expected to be lower than a year ago, the company did raise its EPS guidance for 2012.

Victoria's Secret

Limited Brands Inc. on Wednesday posted a decline in second-quarter results, but still raised full-year guidance.

For the three months ended July 28, second-quarter income fell 37.9 percent to $143.6 million, or 49 cents a diluted share, versus $231.2 million, or 73 cents, last year. Excluding pretax charges this year related to the La Senza store closures and a nontaxable gain last year as well as a pretax expense related to a charitable contribution, adjusted income was down 2.3 percent to $147.2 million, or 50 cents a diluted share, compared with $150.7 million, or 48 cents, a year ago.

Sales for the quarter fell 2.4 percent to $2.40 billion from $2.46 billion. Sales results for the year-ago quarter included $216.6 million attributable to the third-party apparel sourcing business that was sold in November. Comparable-store sales for the quarter just ended rose 8 percent.

The company expects 2012 third-quarter adjusted earnings per share to be between 15 cents and 20 cents, compared with adjusted EPS of 25 cents in the comparable year-ago quarter. For 2012, the company projected EPS of between $2.73 and $2.88, versus previous guidance of $2.63 to $2.83.

The company operates 2,619 specialty stores in the U.S. Its brands — Victoria’s Secret, Pink, Bath & Body Works, La Senza and Henri Bendel — are sold in more than 700 company-operated and franchised additional locations worldwide.