TO $448 MILLION; 1994 EARNINGS PER SHARE INCREASED 16 PERCENT
TO $1.25; FOURTH QUARTER NET INCOME UP 31 PERCENT; FALL SEASON SETS
RECORDS FOR SALES AND NET INCOME; 1995 PLAN FOR 430 NEW STORES TOPS
1994 OPENINGS BY 20 PERCENT
COLUMBUS, Ohio, Feb. 14 /PRNewswire/ -- The Limited, Inc.
(NYSE: LTD; London) reported a 15% increase in net income to
$448.3 million for the 52-week fiscal year ended January 28, 1995, on
net sales of $7.321 billion, or a 6.1% after-tax return. Earnings per
share increased 16% to $1.25, compared to $1.08 last year.
Net sales for the fourth quarter grew to $2.539 billion, an increase
of 5% from $2.421 billion a year ago. Net income increased 31% to
$256.7 million, compared to $196.3 million last year, and earnings per
share increased 33%, from $0.54 to $0.72. Fall season sales of
$4.254 billion and net income of $347.2 million both set new Company
Leslie H. Wexner, Chairman and Chief Executive Officer, said, "In
1994, we delivered solid results and made significant progress on the
two principal objectives for the year.
"First, we set as an objective and, in fact, achieved the goal of
restoring merchandise margin integrity at our women's fashion apparel
businesses, thereby increasing their operating income contribution as a
percentage of sales. Merchandise margin is the key indicator by which
we are measuring our progress in returning these businesses to their
historic levels of productivity and profitability.
"Going forward, Michael Weiss, who has operational responsibility
for our women's category, and I will continue to work with the
divisional leadership on improving quality, consistency of fit, fashion
direction for the customers of each business and, most importantly, on
leveraging the sales and earnings potential inherent in these brands.
"Our progress in the women's category is best demonstrated by the
associates at Express who delivered a significant increase in
merchandise margin rate during the fourth quarter and their almost
best-ever Fall season in their history. Jill Dean and her team at Lane
Bryant also had a solid year, producing a moderate increase in sales
with improved margins."
Mr. Wexner continued, "I am very proud of our success at reaching
our second objective in 1994, which was to continue to profitably grow
our lingerie, men's, personal care and children's businesses. These
divisions increased their total sales by 28%, contributed 41% of total
sales and approximately 55% of operating income. This outstanding
performance resulted in a strengthened group of businesses and brands
that possess considerable opportunities for continued growth. Overall,
every successful business demonstrated an ability to stay very close to
"The associates of Victoria's Secret Stores, under the leadership of
Grace Nichols, set new fourth quarter and year-long records in operating
income dollars for the division, on an increase in sales of almost
$200 million for the year.
"Michael Jeffries and the Abercrombie & Fitch associates set new
records for margin rate and profitability for the fourth quarter and
year, increasing their earnings contribution over last year. David
Mangini and his team at Structure produced a 20% increase in earnings
for the year in spite of a disappointing fourth quarter.
"Bath & Body Works, under the leadership of Beth Pritchard, produced
another stellar year, more than doubling their sales while setting new
records for the fourth quarter and year for merchandise margin and
operating profit rate. The global potential for the brand was
demonstrated by the successful opening of five stores in the U.K. in
partnership with Next plc."
In 1995, The Limited, Inc. plans to open about 430 stores, a 20%
increase from the 358 stores opened in 1994. The Company also plans to
remodel approximately 180 stores, and add on a net basis 1.5 million
square feet of new retail selling space, versus the 1.2 million square
feet added in 1994.
The Limited, Inc., through Express, Lerner New York, Limited Stores,
Victoria's Secret, Lane Bryant, Structure, Limited Too, Bath & Body
Works, Abercrombie & Fitch, Henri Bendel, Cacique, and Penhaligon's,
presently operates 4,867 specialty stores and distributes apparel
nationally through the Victoria's Secret Catalogue.
/CONTACT: Alfred S. Dietzel of The Limited, Inc., 614-479-7070/
/FIRST AND FINAL ADD -- TABULAR MATERIAL -- TO FOLLOW/
CO: Limited, Inc.
-- CL014 --
7432 02/14/95 08:43 EST
EOS (PRN) Feb/14/95 08:43 86
-0- (PRN) Feb/14/95 8:58
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