According to the Columbus, Ohio-based company Limited Brands Inc., its profit dropped by more than half during the 2nd quarter. The company said that difficult retail environment was the basic factor behind drop in its profit. However, the results of the 2nd quarter beat the expectation of the company as it kept a tight hold on its expenses and inventory.
After closing at $17.97, the shares rose to $ 1.09 (6.1 percent) as $18.90 in aftermarket electronic trading.
The specialty apparel maker company, which operates with Victoria’s Secret and Bath & Body, announced that its profit for the second quarter ended Aug.2 dropped 30 cents per share or 61 percent to $ 102 million.
The profit during the last year for the same period was 67 cents per share or $264.4 million.
The company’s revenue dropped 13 percent from $2.62 billion to $2.28 billion.
Analysts polled by Thomson Reuters was indicating more decrease in profit but the tight management of inventory and expenses by the company helped to beat the expectations.
Leslie Wexner, who is chairman and chief executive of the company, said in a statement, “It is expected that retail environment will remain challenging in the coming days, but we will manage the financial aspects of the company accordingly.”
The company expects $1.45 ($1.60/share) earnings for the year excluding one-time items. On the other hands, analysts expect it $ 1.48/share.
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