Maybe The Limited Has Limits After All

Jackie Onassis was there. So was Brooke Astor. And so, of course, was the host, Limited Chairman Leslie H. Wexner. On Feb. 27, le tout New York toasted the opening of the new flagship store for Henri Bendel, the retailer to the ultrachic now owned by The Limited Inc. Wexner had a lot more than a store opening to celebrate. In 1990, a year most retailers want to forget, The Limited's earnings rose 15%, to $398 million, on sales of $5.3 billion. At 25 3/4, Limited stock is almost double the price of last September.

So all's well at The Limited? Not exactly. Although Bendel's gives Wexner entree into the high end of fashion retailing, where he can compete with Bergdorf Goodman, I. Magnin, and Neiman-Marcus, he can't let this refurbished jewel grab too much of his attention. Despite the recent runup in the stock price, it's now only where it was in 1987. Moreover, last year's rise in net profits pales compared with the 41% increase in 1989. That reflects disappointments at two core operations: Limited Stores, the largest division, with $1.3 billion in sales, saw its 1990 operating profit drop 24%, to $163 million, according to estimates by analyst Richard N. Baum of Sanford C. Bernstein & Co. And at Lerner New York, the second-largest division, with $975 million in revenues, Baum says operating profits dropped 7%, to $93 million. (The Limited declined to comment for this article.)