TSC Ratings' Updates: Limited Brands

Net operating cash flow has increased to $359 million or 19.66% when compared with the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -20.63%.

The gross profit margin of 37.30% for LTD we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 4.50% trails the industry average.

LTD, with its decline in revenue, slightly underperformed the industry average of 9.5%. Since the same quarter one year prior, revenue fell by 12.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

Compared with where it was trading a year ago, LTD's share price has not changed very much because of relatively weak year-over-year performance of the overall market, the company's stagnant earnings and other mixed results. Although this company's share value is no higher or lower since its value 12 months ago, it seems as though there could be potential for future growth.

LTD has experienced a steep decline in earnings per share in the most-recent quarter in comparison with its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, LTD has increased its bottom line by earning $1.93 vs. $1.67 in the prior year. For the next year, the market is expecting a contraction of 18.1% in earnings ($1.58 vs. $1.93).