Limited Meets Estimates, Sets Plans to Sell Lane Bryant

Limited (LTD Quote) met Wall Street's expectations for the fourth quarter, even as the results fell sharply from a year ago, and the apparel retailer disclosed plans to find a buyer for its Lane Bryant division.

On an adjusted basis, excluding items, earnings for the quarter ended Feb. 3 fell to 55 cents a share, down 17% from 66 cents in the year-ago quarter. Operating income fell 16% to $487.4 million from $582.5 million, and net income dropped 18% to $243.1 million from $294.9 million last year.

Sales for the 14-week fourth quarter rose to $3.52 billion from $3.29 billion for the 13-week period last year. Same-store sales rose 2% for the quarter.

"Except for the performance at Express, the fourth quarter of 2000 was a major disappointment," the company said in a press release. "Given the U.S. economic situation, we are planning for modest profit growth in 2001, and we are expecting the first three quarters of the year to be particularly challenging,"

In addition to planning the sale of Lane Bryant, Limited named Ken Gilman CEO of the division. Jill Dean will retain her position as president of Lane Bryant. The company also set plans to rename its Structure stores Express Men's, and the unit will operate under the leadership of Express President and CEO Michael Weiss.

Gilman most recently served as Limited's vice chairman and chief administrative officer. The company also named Len Schlesinger executive vice president and chief operating officer. Schlesinger joined the company in 1999 as executive vice president of organization, leadership and human resources.

Yesterday, Intimate Brands (IBI Quote), which is 84%-owned by Limited, reported earnings that met Wall Street's lowered estimates for the fiscal fourth quarter.