Limited Brands’ first-quarter profit slashed 46 percent, due to lacerate demands for its top brands viz. Victoria’s Secret and others.
Limited Brands Inc., who plans to shut its under performing apparel business, asserts that company’s income were mar by lower-than-anticipated sales. The company posted $52.9 million, or 13 cents per share, earning for the quarter, compared with profits of $99.4 million, or 25 cents a share, a year ago.
Although apparel manufacturer’s sale mounts 4 percent as it totaled $2.3 billion compared to $2.1 billion a year earlier, but lower margin tears its profit. Increased sale could not boost up company’s morale, as they are not sure for the coming quarter. Company find itself unable to stitch its clothes as it forecast that its first quarter’s profit making stores might be delivered less than previous results.
Disappoints with the lower than expected quarterly result, Limited Brands forecasts that company’s shares will slash further in the succession as they expects that in the second quarter shares will be tally between 20 cents to 24 cents, compared to 28 cents a year ago.
Company’s yearly earnings expected to lower to between $1.55 and $1.65 per share, compared to its initial guidance of $1.75 per share.
As the quarterly result became the headlines in the market, the company shares fell $1.06, or 4 percent, to $25.40 in extended trading after gaining 48 cents in the regular session. The shares have traded between $23.54 and $32.60 in the past year.
Image: visualstore
Via: CNN
