Limited Brands Falls On Revised October Forecast

NEW YORK (AP) — A reduced forecast for a key October sales figure led shares of Limited Brands Inc. sharply lower on Tuesday.

Late Monday, the operator of stores including Victoria's Secret and Bath & Body Works said it expects October sales at stores open at least a year to fall in the "low-to-mid single digits." The company, which is based in Columbus, Ohio, previously forecast flat sales from a year ago.

The company's stock dropped $1.38, or 7.1 percent, to $18.11 in afternoon trading. The shares have traded in a range of $5.98 to $19.99 over the last year.

Sales at stores open at least a year are a key indicator of retailer performance since they measure growth at existing stores rather than newly opened ones.

Todd Slater of Lazard Capital Markets said the update to Limited's October forecast was pushing the shares down, but presented "an excellent buying opportunity." The analyst called Limited an "underloved recovery story" that could have earnings per share of more than $4, driven by more normalized margins and international royalty profit.