Limited Brands 1Q Profit Is Better Than Expected

MAE ANDERSON

NEW YORK (AP) — Clothing and personal care products retailer Limited Brands Inc. posted a surprise first-quarter profit on Wednesday, as its cost-cutting efforts offset lower sales.

The operator of the Victoria's Secret and Bath and Body Works chains also raised its full-year guidance. The shares jumped 59 cents, or 5 percent, to $12.25 in trading after hours, having closed at $11.66, down 29 cents, before the results were released.

Columbus, Ohio-based Limited Brands said its profit for the quarter that ended May 2 fell 97 percent to $2.6 million, or a penny per share, from $97.8 million, or 28 cents per share, last year.

Revenue fell 10 percent to $1.73 billion from $1.93 billion a year ago.

Analysts polled by Thomson Reuters had predicted a loss of 3 cents per share on slightly higher revenue of $1.75 billion. The company didn't record any one-time items in this year's first quarter, making its results comparable to analyst estimates, which generally exclude one-time items.

Sales in stores open at least one year, a key retail metric known as same-store sales, fell 7 percent during the quarter.