Limited Brands Reports Second Quarter 2012 Earnings

             Limited Brands Reports Second Quarter 2012 Earnings

— PROVIDES THIRD QUARTER AND RAISES FULL YEAR 2012 EARNINGS GUIDANCE —

PR Newswire

COLUMBUS, Ohio, Aug. 15, 2012

COLUMBUS, Ohio, Aug. 15, 2012 /PRNewswire/ -- Limited Brands, Inc. (NYSE: LTD)
today reported 2012 second quarter results.

(Logo: http://photos.prnewswire.com/prnh/20020520/CLM001LOGO )

Second Quarter Results

Adjusted earnings per share for the second quarter ended July 28, 2012, were
$0.50 compared to adjusted earnings per share of $0.48 for the quarter ended
July 30, 2011. Second quarter adjusted operating income was $308.9 million
compared to $307.0 million last year, and adjusted net income was $147.2
million compared to $150.7 million last year. Adjusted results exclude
certain significant items as detailed below:

  oIn 2012: A pre-tax charge of $3.6 million, or $0.01 per share, related to
    La Senza store closures.
  oIn 2011 (totaling to a benefit of $0.25 per share): A non-taxable gain of
    $147.1 million, or $0.47 per share, and a pre-tax expense of $113.4
    million, or $0.22 per share, related to the charitable contribution of all
    of the company's remaining shares of Express (NYSE: EXPR) to the Limited
    Brands Foundation.

Including the significant items above, reported second quarter earnings per
share were $0.49 compared to $0.73 last year; operating income was $305.3
million compared to $193.5 million last year; and net income was $143.6
million compared to $231.2 million last year.

Comparable store sales for the second quarter increased 8 percent, and net
sales were $2.399 billion compared to $2.458 billion last year. Second
quarter 2011 sales included $216.6 million attributable to the third party
apparel sourcing business, which was sold in November 2011.

At the conclusion of this press release is a reconciliation of reported to
adjusted results.

2012 Outlook

The company stated that it expects 2012 third quarter adjusted earnings per
share to be $0.15 to $0.20 compared to adjusted earnings per share of $0.25
per share last year.

For 2012, the company expects earnings per share of $2.73 to $2.88 versus its
previous guidance of $2.63 to $2.83.

Earnings Call Information

Limited Brands will conduct its second quarter earnings call at 9 a.m. Eastern
on Thursday, Aug. 16. To listen, call 1-866-583-6618 (international dial-in
number: 1-937-200-3978). For an audio replay, call 1-866-NEWS-LTD
(international replay number: 1-706-902-3452) or log onto
www.Limitedbrands.com.Additional second quarter financial information is
also available at www.Limitedbrands.com.

ABOUT LIMITED BRANDS:

Limited Brands, through Victoria's Secret, Pink, Bath & Body Works, La Senza
and Henri Bendel, is an international company. The company operates 2,619
specialty stores in the United States and its brands are sold in more than 700
company-operated and franchised additional locations world-wide. The
company's products are also available online at www.VictoriasSecret.com,
www.BathandBodyWorks.com, www.HenriBendel.com and www.LaSenza.com.

Limited Brands b-roll footage of stores is available through our online
newsroom.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of
1995

Limited Brands, Inc. cautions that any forward-looking statements (as such
term is defined in the Private Securities Litigation Reform Act of 1995)
contained in this press release or the second quarter earnings call involve
risks and uncertainties and are subject to change based on various factors,
many of which are beyond our control. Accordingly, our future performance and
financial results may differ materially from those expressed or implied in any
such forward-looking statements. Words such as "estimate," "project," "plan,"
"believe," "expect," "anticipate," "intend," "planned," "potential" and any
similar expressions may identify forward-looking statements. Risks associated
with the following factors, among others, in some cases have affected and in
the future could affect our financial performance and actual results and could
cause actual results to differ materially from those expressed or implied in
any forward-looking statements included in this press release or the second
quarter earnings call:

  ogeneral economic conditions, consumer confidence, consumer spending
    patterns and market disruptions including severe weather conditions,
    natural disasters, health hazards, terrorist activities, financial crises,
    political crises or other major events, or the prospect of these events;
  othe seasonality of our business;
  othe dependence on a high volume of mall traffic and the possible lack of
    availability of suitable store locations on appropriate terms;
  oour ability to grow through new store openings and existing store remodels
    and expansions;
  oour ability to successfully expand into international markets and related
    risks;
  oour independent licensees and franchisees;
  oour direct channel business;
  oour failure to protect our reputation and our brand images;
  oour failure to protect our trade names, trademarks and patents;
  othe highly competitive nature of the retail industry generally and the
    segments in which we operate particularly;
  oconsumer acceptance of our products and our ability to keep up with
    fashion trends, develop new merchandise and launch new product lines
    successfully;
  oour reliance on foreign sources of production, including risks related to:

       opolitical instability;
       oduties, taxes and other charges on imports;
       olegal and regulatory matters;
       ovolatility in currency exchange rates;
       olocal business practices and political issues;
       opotential delays or disruptions in shipping and related pricing
         impacts;
       othe disruption of imports by labor disputes; and
       ochanging expectations regarding product safety due to new
         legislation;

  ostock price volatility;
  oour failure to maintain our credit rating;
  oour ability to service our debt;
  oour ability to retain key personnel;
  oour ability to attract, develop and retain qualified employees and manage
    labor costs;
  othe inability of our manufacturers to deliver products in a timely manner
    and meet quality standards;
  ofluctuations in product input costs;
  ofluctuations in energy costs;
  oincreases in the costs of mailing, paper and printing;
  oclaims arising from our self-insurance;
  oour ability to implement and maintain information technology systems;
  oour failure to comply with regulatory requirements;
  otax matters; and
  olegal and compliance matters.

We are not under any obligation and do not intend to make publicly available
any update or other revisions to any of the forward-looking statements
contained in this press release or the second quarter earnings call to reflect
circumstances existing after the date of this press release or to reflect the
occurrence of future events even if experience or future events make it clear
that any expected results expressed or implied by those forward-looking
statements will not be realized. Additional information regarding these and
other factors can be found in "Item 1A. Risk Factors" in our 2011 Annual
Report on Form 10-K.



LIMITED BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
THIRTEEN WEEKS ENDED JULY 28, 2012 AND JULY 30, 2011
(Unaudited)
(In thousands except per share amounts)
                                       2012                2011
Net Sales                              $    2,399,095   $    2,458,135
Cost of Goods Sold, Buying and         (1,456,621)         (1,556,037)
Occupancy
Gross Profit                           942,474             902,098
General, Administrative and Store      (637,136)           (708,565)
Operating Expenses
Operating Income                       305,338             193,533
Interest Expense                       (79,526)            (64,260)
Other (Expense) Income                 3,747               146,749
Income Before Income Taxes             229,559             276,022
Provision for Income Taxes             85,910              44,828
Net Income                            $     143,649  $     231,194
Net Income Per Diluted Share           $            $       
                                       0.49                0.73
Weighted Average Shares Outstanding    296,030             314,800

LIMITED BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
THIRTEEN WEEKS ENDED JULY 28, 2012 AND JULY 30, 2011
(Unaudited)
(In thousands except per share amounts)
               2012                                   2011
               Reported     Adjustments  Adjusted     Reported     Adjustments  Adjusted
Net Sales      $         $       $         $         $       $   
               2,399,095        -   2,399,095    2,458,135        -   2,458,135
Cost of Goods
Sold,
    Buying &   (1,456,621)  2,800        (1,453,821)  (1,556,037)  -            (1,556,037)
    Occupancy
Gross Profit   942,474      2,800        945,274      902,098      -            902,098
General,
Administrative
and
    Store
    Operating  (637,136)    800          (636,336)    (708,565)    113,428      (595,137)
    Expenses
Operating      305,338      3,600        308,938      193,533      113,428      306,961
Income
Interest       (79,526)     -            (79,526)     (64,260)     -            (64,260)
Expense
Other
(Expense)      3,747        -            3,747        146,749      (147,053)    (304)
Income
Income Before  229,559      3,600        233,159      276,022      (33,625)     242,397
Income Taxes
Provision for  85,910       -            85,910       44,828       46,850       91,678
Income Taxes
Net Income    $        $       $        $        $        $    
               143,649      3,600      147,249     231,194     (80,475)    150,719
Net Income Per $                    $       $                    $     
Diluted Share    0.49                    0.50       0.73                    0.48
Weighted
Average Shares 296,030                   296,030      314,800                   314,800
Outstanding
See Notes to Consolidated Statements of Income and Reconciliation of Adjusted Results for
additional information.

LIMITED BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
TWENTY SIX WEEKS ENDED JULY 28, 2012 AND JULY 30, 2011
(Unaudited)
(In thousands except per share amounts)
                                        2012                2011
Net Sales                               $    4,552,879   $    4,675,152
Cost of Goods Sold, Buying and          (2,708,442)         (2,931,326)
Occupancy
Gross Profit                            1,844,437           1,743,826
General, Administrative and Store       (1,245,873)         (1,333,470)
Operating Expenses
Operating Income                        598,564             410,356
Interest Expense                        (157,318)           (118,928)
Other (Expense) Income                  1,438               233,237
Income Before Income Taxes              442,684             524,665
Provision for Income Taxes              174,477             128,300
Net Income                             $     268,207  $     396,365
Net Income Per Diluted Share            $            $       
                                        0.90                1.23
Weighted Average Shares Outstanding     298,634             321,636

LIMITED BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
TWENTY SIX WEEKS ENDED JULY 28, 2012 AND JULY 30, 2011
(Unaudited)
(In thousands except per share amounts)
               2012                                   2011
               Reported     Adjustments  Adjusted     Reported     Adjustments  Adjusted
Net Sales      $         $       $         $         $       $   
               4,552,879        -   4,552,879    4,675,152        -   4,675,152
Cost of Goods
Sold,
    Buying &   (2,708,442)  2,800        (2,705,642)  (2,931,326)  -            (2,931,326)
    Occupancy
Gross Profit   1,844,437    2,800        1,847,237    1,743,826    -            1,743,826
General,
Administrative
and
    Store
    Operating  (1,245,873)  800          (1,245,073)  (1,333,470)  163,428      (1,170,042)
    Expenses
Operating      598,564      3,600        602,164      410,356      163,428      573,784
Income
Interest       (157,318)    -            (157,318)    (118,928)    -            (118,928)
Expense
Other
(Expense)      1,438        -            1,438        233,237      (233,478)    (241)
Income
Income Before  442,684      3,600        446,284      524,665      (70,050)     454,615
Income Taxes
Provision for  174,477      -            174,477      128,300      45,765       174,065
Income Taxes
Net Income    $        $       $        $        $        $    
               268,207      3,600      271,807     396,365     (115,815)    280,550
Net Income Per $                    $       $                    $     
Diluted Share    0.90                    0.91       1.23                    0.87
Weighted
Average Shares 298,634                   298,634      321,636                   321,636
Outstanding
See Notes to Consolidated Statements of Income and Reconciliation of Adjusted Results for
additional information.

  LIMITED BRANDS, INC. AND SUBSIDIARIES
  NOTES TO CONSOLIDATED STATEMENTS OF INCOME AND
  RECONCILIATION OF ADJUSTED RESULTS
  (Unaudited)

The "Adjusted Results" provided in the attached unaudited Consolidated
Statements of Income and Reconciliation of Adjusted Results are non-GAAP
financial measures and reflect the following:

Fiscal 2012

In the second quarter of 2012, adjusted results exclude the following:

  o$3.6 million ($3.6 million net of tax) of store closure costs at La Senza.

In the first quarter of 2012, there were no adjustments to results.

Fiscal 2011

In the second quarter of 2011, adjusted results exclude the following:

  oA $147.1 million non-taxable gain, included in other income and expense,
    and associated pre-tax expense of $113.4 million, included in general,
    administrative and store operating expenses, associated with our
    charitable contribution of Express, Inc. common stock to The Limited
    Brands Foundation.

In the first quarter of 2011, adjusted results exclude the following:

  oAn $86.4 million pre-tax gain ($55.6 million net of tax), included in
    other income and expense, related to the sale of shares of Express, Inc.
    common stock.
  oA $50.0 million pre-tax expense ($31.2 million net of tax), included in
    general, administrative and store operating expenses, related to a pledge
    to The Limited Brands Foundation.
  oAn $11.0 million tax benefit primarily related to the favorable resolution
    of certain discrete income tax matters.

The Unaudited Adjusted Consolidated Statements of Income should not be
construed as an alternative to the reported results determined in accordance
with generally accepted accounting principles. Further, the Company's
definition of adjusted income information may differ from similarly titled
measures used by other companies. While it is not possible to predict future
results, management believes the adjusted information is useful for the
assessment of the ongoing operations of the Company. The Unaudited Adjusted
Consolidated Statements of Income should be read in conjunction with the
Company's historical financial statements and notes thereto contained in the
Company's quarterly reports on Form 10-Q and annual report on Form 10-K.

SOURCE Limited Brands, Inc.

Website: http://www.Limitedbrands.com
Contact: Limited Brands: Investor Relations, Amie Preston, +1-614-415-6704,
apreston@limitedbrands.com, Media Relations, Tammy Roberts Myers,
+1-614-415-7072, extcomm@limitedbrands.com
 
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