Limited Brands Reports 19% Increase In Third Quarter 2013 Earnings Per Share

 Limited Brands Reports 19% Increase In Third Quarter 2013 Earnings Per Share

- PROVIDES FOURTH QUARTER AND UPDATES FULL YEAR 2013 EARNINGS GUIDANCE -

PR Newswire

COLUMBUS, Ohio, Nov. 20, 2013

COLUMBUS, Ohio, Nov. 20, 2013 /PRNewswire/ -- Limited Brands, Inc. (now known
as L Brands, Inc.) (NYSE: LTD) today reported 2013 third quarter results and
increased its 2013 full-year earnings guidance.

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

Third Quarter Results
Earnings per share for the third quarter ended Nov. 2, 2013 increased 19% to
$0.31 compared to adjusted earnings per share of $0.26 for the third quarter
ended Oct. 27, 2012.

Third quarter operating income was $211.0 million compared to adjusted
operating income of $197.4 million last year, and net income was $92.0 million
compared to adjusted net income of $75.6 million last year. Adjusted results
in 2012 exclude certain significant items as detailed below:

  oIn 2012 (totaling to a charge of $0.01 per share):

       oA pre-tax charge of $10.4 million, or $0.04 per share, related to La
         Senza store closures; and
       oA pre-tax gain of $12.7 million, or $0.03 per share, from cash
         distributions related to the company's Easton investments.

Including the significant items above, reported 2012 third quarter earnings
per share were $0.25; operating income was $186.9 million; and net income was
$73.4 million.

The company reported net sales of $2.171 billion for the third quarter ended
Nov. 2, 2013, an increase of 6 percent compared to net sales of $2.050 billion
for the third quarter ended Oct. 27, 2012. The company reported a comparable
store sales increase of 3 percent for the 13 weeks ended Nov. 2, 2013,
compared to the 13 weeks ended Nov. 3, 2012.

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

2013 Outlook
The company stated that it expects fourth quarter earnings of $1.67 to $1.82
per share. For 2013, the company expects earnings per share of $3.07 to
$3.22. The fourth quarter projection includes incremental interest expense of
approximately $0.02 per share related to the $500 million notes issued in
October, which was not included in the company's previous forecast.

Earnings Call Information
Limited Brands will conduct its third quarter earnings call at 9 a.m. Eastern
time on Thursday, Nov. 21. 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 third 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 2,655
specialty stores in the United States and its brands are sold in about 800
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.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of
1995
L 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 third 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 third
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 global markets and related risks;
  oour relationships with independent licensees and franchisees;
  oour direct channel businesses;
  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 ability to source, distribute and sell goods and materials on a global
    basis, including risks related to:

       opolitical instability;
       oduties, taxes and other charges;
       olegal and regulatory matters;
       ovolatility in currency exchange rates;
       olocal business practices and political issues;
       opotential delays or disruptions in shipping and transportation and
         related pricing impacts;
       othe disruption of production or distribution 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 or refinance 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 and
    to protect associated data;
  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 third quarter earnings call to reflect
circumstances existing after the date of this report 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 2012 Annual
Report on Form 10-K.



LIMITED BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
THIRTEEN WEEKS ENDED NOVEMBER 2, 2013 AND OCTOBER 27, 2012
(Unaudited)
(In thousands except per share amounts)
                                        2013                2012
Net Sales                               $    2,171,087   $    2,050,189
Cost of Goods Sold, Buying and          (1,314,378)         (1,225,063)
Occupancy
Gross Profit                            856,709             825,126
General, Administrative and Store       (645,683)           (638,178)
Operating Expenses
Operating Income                        211,026             186,948
Interest Expense                        (76,840)            (77,155)
Other Income                            7,238               17,603
Income Before Income Taxes              141,424             127,396
Provision for Income Taxes              49,440              54,036
Net Income                             $      91,984  $      73,360
Net Income Per Diluted Share            $            $       
                                        0.31                0.25
Weighted Average Shares Outstanding     296,544             294,386





LIMITED BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
THIRTEEN WEEKS ENDED NOVEMBER 2, 2013 AND OCTOBER 27, 2012
(Unaudited)
(In thousands except per share amounts)
                    2013           2012
                    Reported       Reported       Adjustments    Adjusted
Net Sales           $           $           $        $   
                    2,171,087      2,050,189         -       2,050,189
Cost of Goods Sold,
   Buying &         (1,314,378)    (1,225,063)    10,437         (1,214,626)
   Occupancy
Gross Profit        856,709        825,126        10,437         835,563
General,
Administrative and
   Store Operating  (645,683)      (638,178)      -              (638,178)
   Expenses
Operating Income    211,026        186,948        10,437         197,385
Interest Expense    (76,840)       (77,155)       -              (77,155)
Other Income        7,238          17,603         (12,745)       4,858
Income Before       141,424        127,396        (2,308)        125,088
Income Taxes
Provision for       49,440         54,036         (4,588)        49,448
Income Taxes
Net Income         $         $         $        $     
                    91,984         73,360         2,280          75,640
Net Income Per      $        $                       $      
Diluted Share        0.31          0.25                         0.26
Weighted Average    296,544        294,386                       294,386
Shares 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
THIRTY NINE WEEKS ENDED NOVEMBER 2, 2013 AND OCTOBER 27, 2012
(Unaudited)
(In thousands except per share amounts)
                                      2013                2012
Net Sales                             $    6,954,997   $    6,603,068
Cost of Goods Sold, Buying and        (4,168,252)         (3,933,506)
Occupancy
Gross Profit                          2,786,745           2,669,562
General, Administrative and Store     (1,906,733)         (1,884,050)
Operating Expenses
Operating Income                      880,012             785,512
Interest Expense                      (232,181)           (234,473)
Other Income                          11,243              19,041
Income Before Income Taxes            659,074             570,080
Provision for Income Taxes            245,674             228,513
Net Income                           $     413,400  $     341,567
Net Income Per Diluted Share          $            $        1.15
                                      1.40
Weighted Average Shares Outstanding   295,734             297,218





LIMITED BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
THIRTY NINE WEEKS ENDED NOVEMBER 2, 2013 AND OCTOBER 27, 2012
(Unaudited)
(In thousands except per share amounts)
                      2013                                     2012
                      Reported        Reported     Adjustments  Adjusted
Net Sales             $            $         $       $   
                      6,954,997       6,603,068        -   6,603,068
Cost of Goods Sold,
      Buying &        (4,168,252)     (3,933,506)  13,237       (3,920,269)
      Occupancy
Gross Profit          2,786,745       2,669,562    13,237       2,682,799
General,
Administrative and
      Store Operating (1,906,733)     (1,884,050)  800          (1,883,250)
      Expenses
Operating Income      880,012         785,512      14,037       799,549
Interest Expense      (232,181)       (234,473)    -            (234,473)
Other Income          11,243          19,041       (12,745)     6,296
Income Before Income  659,074         570,080      1,292        571,372
Taxes
Provision for Income  245,674         228,513      (4,588)      223,925
Taxes
Net Income           $           $        $       $    
                      413,400        341,567      5,880      347,447
Net Income Per        $         $                    $     
Diluted Share          1.40           1.15                   1.17
Weighted Average      295,734         297,218                   297,218
Shares 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 2013

In the first, second and third quarter of 2013, there were no adjustments to
results.

Fiscal 2012

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

  o$10.4 million ($10.4 million net of tax) of store closure costs at La
    Senza.
  oA $12.7 million pre-tax gain ($8.2 million net of tax), included in other
    income, from $13.4 million of cash distributions related to the company's
    Easton investments.

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.

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: Investor Relations, Amie Preston, (614) 415-6704,
apreston@limitedbrands.com, or Media Relations, Tammy Roberts Myers, (614)
415-7072, extcomm@limitedbrands.com
 
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