Rob Lenihan
Limited Brands(LTD Quote - Cramer on LTD - Stock Picks) is removing its clothes, and Wall Street doesn't like what it sees.
At least three analysts cut their ratings on the Columbus, Ohio-based retailer Wednesday, a day after the company slashed first-quarter earnings estimates and disclosed steps to unload a large portion of its struggling clothing brands. Shares were slipping 56 cents, or 2.1%, to $25.62 recently. That comes on top of a 4.5% decline Tuesday. Limited plans to sell 67% of its Express chain and also explore options for its namesake women's clothing store. With the move to sell Express and potentially Limited, the company's main focus would be on its Victoria's Secret lingerie brand and its Bath and Body Works beauty-products stores. Citigroup analyst Kimberly Greenberger questioned Limited's plan to concentrate on Victoria's Secret, since sales at the division have been slumping. She lowered her rating on Limited's stock to hold from buy, citing deteriorating fundamentals at the intimate-apparel chain. Greenberger said Victoria's Secret -- Limited's largest division -- suffered from a lack of newness in its bra launches. The weak sales lead to increased markdowns on bra launches and sleepwear, she said. In a prerecorded call Tuesday, Martyn Redgrave, Limited's executive vice president and chief administrative officer, said the company was disappointed by Victoria's Secret's results. "In hindsight, our bra launches lacked enough energy and newness to drive the planned sales," he said.
RSS
