Limited Brands To Expand Some Brands In Canada

MAE ANDERSON

COLUMBUS, Ohio (AP) — Limited Brands Inc. said Thursday it is shuttering its La Senza Girl stores in Canada as it expands other brands there, including Bath and Body Works and its Victoria's Secret line, Pink.

On Wednesday, the company reported its third-quarter profit rose above its forecast on cost cuts and raised its full-year guidance. But one weak spot has been the Canadian La Senza chain the company acquired in 2007.

Limited Brands has said one of its goals was to rebuild La Senza's profitability. Core lingerie sales in stores open at least one year fell 3 percent in La Senza's core lingerie business and 6 percent overall — including the girls stores.

La Senza Girl stores offer pajamas and clothing for adolescents, while La Senza stores are lingerie stores for women.

The company said La Senza Girl stores are "not aligned with our overall strategic focus on lingerie" and is closing the remaining 42 La Senza Girl stores. Limited will record charges in the fourth-quarter related to the closings of 1 cents to 2 cents per share.

Meanwhile, Limited Brands, which is based in Columbus, Ohio, is expanding some of its other brands in Canada.

It will have 31 Bath and Body Works stores open there by the end of November and plans to open 30 to 40 more by 2010. Existing Bath and Body Works stores in Canada have sales volumes about 2.5 times the U.S. average, the company said.