Limited Brands Inc. on Wednesday posted a significant decline in second-quarter profits, due to an increasingly unfriendly economic landscape, but the firm still raised its yearly guidance.
The Columbus, Ohio-based parent of Victoria’s Secret, La Senza, Henri Bendel and Bath & Body Works said income fell by 61.4 percent to $102 million for the three months ended Aug. 2, or 30 cents a diluted share, from $264.4 million, or 67 cents, in the same period a year ago. Sales for the quarter fell 12.9 percent to $2.28 billion from $2.62 billion, while comparable-store sales fell 7 percent.
For the six months, the company reported a 37 percent drop in income to $199.8 million, or 58 cents a share, from $317.3 million, or 79 cents a share, a year ago. Sales fell 14.7 percent to $4.21 billion from $4.93 billion.
Company chairman and chief executive officer Leslie Wexner said Limited Brands was “pleased with its performance in this challenging economic environment.”
The ceo also boasted: “Our disciplined management of inventory and expenses resulted in earnings per share that exceeded our initial expectations…in spite of negative same-store sales in the quarter.”
Wexner laid out the company’s strategy moving forward.
“Although we expect that the environment will continue to remain challenging, we will continue to conservatively manage the financial aspects of the business, while at the same time provide compelling assortments and exciting store experiences to build our brands,” he said.
The company raised its yearly earnings per share guidance, expecting EPS at $1.45 to $1.60 a share for 2008, excluding first-half items of 20 cents a share. The new figure is up from the $1.38 to $1.58 a share it expected following the announcement of its first-quarter results in May. Analysts polled by Yahoo Finance expect EPS of $1.48 a share.
Gross profit for the second quarter accounted for 33.3 percent of net sales.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast