Limited Stays Cautious on Sales

Limited Brands (LTD Quote - Cramer on LTD - Stock Picks) posted first-quarter earnings that were in line with its recently lowered forecast, but the retailing conglomerate warned of continued trouble in the current period.

The company also set plans for a $500 million stock buyback.

For the first quarter, Limited earned $52.9 million, or 13 cents a share, down from $99.4 million, or 25 cents a share. The results matched analysts' lowered target, according to Thomson Financial.

Last week, the Columbus, Ohio-based company slashed its first-quarter earnings projection to 12 cents to 14 cents a share from its prior view of 25 cents to 28 cents. At the time, the company attributed the guidance cut to weaker-than-anticipated sales and margins at each of its brands, particularly Victoria's Secret.

Sales in the quarter rose to $2.31 billion from $2.08 billion. Same-store sales, representing sales at stores open at least a year, increased 4%.

Limited said it expects trends will remain challenging in the second quarter, and it reiterated its forecast given last week for earnings of 20 cents to 24 cents a share. Analysts -- who had forecast second-quarter earnings of 29 cents a share before Limited announced its projection -- currently expect earnings per share of 22 cents for the period.

Limited said it now expects May same-store sales to drop by the low-single-digit percentage, compared with its prior forecast for positive-low-single-digit comps.

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