Date of report (Date of earliest event reported): May 16, 2012 | ||
Limited Brands, Inc. | ||
(Exact Name of Registrant as Specified in Its Charter) | ||
Delaware | ||
(State or Other Jurisdiction of Incorporation) | ||
1-8344 | 31-1029810 | |
(Commission File Number) | (IRS Employer Identification No.) | |
Three Limited Parkway Columbus, OH | 43230 | |
(Address of Principal Executive Offices) | (Zip Code) | |
(614) 415-7000 | ||
(Registrant's Telephone Number, Including Area Code) | ||
Not Applicable | ||
(Former Name or Former Address, if Changed Since Last Report) |
Limited Brands, Inc. | |||
Date: | May 18, 2012 | By: | /s/ STUART B. BURGDOERFER |
Stuart B. Burgdoerfer | |||
Executive Vice President and Chief Financial Officer |
• | A pre-tax gain of $86.4 million, or $0.17 per share, related to the sale of Express stock; |
• | A pre-tax non-cash expense of $50 million, or $0.10 per share, related to the multi-year funding of the company's charitable foundation; and |
• | An income tax benefit of $11 million, or $0.03 per share, related to the favorable resolution of certain income tax matters. |
• | general economic conditions, consumer confidence, consumer spending patterns and market disruptions including severe weather conditions, natural disasters, health hazards, terrorist activities, financial crises, political crises or other major events, or the prospect of these events; |
• | the seasonality of our business; |
• | the dependence on a high volume of mall traffic and the possible lack of availability of suitable store locations on appropriate terms; |
• | our ability to grow through new store openings and existing store remodels and expansions; |
• | our ability to successfully expand into international markets and related risks; |
• | our independent licensees and franchisees; |
• | our direct channel business; |
• | our failure to protect our reputation and our brand images; |
• | our failure to protect our trade names, trademarks and patents; |
• | the highly competitive nature of the retail industry generally and the segments in which we operate particularly; |
• | consumer acceptance of our products and our ability to keep up with fashion trends, develop new merchandise and launch new product lines successfully; |
• | our reliance on foreign sources of production, including risks related to: |
• | stock price volatility; |
• | our failure to maintain our credit rating; |
• | our ability to service our debt; |
• | our ability to retain key personnel; |
• | our ability to attract, develop and retain qualified employees and manage labor costs; |
• | the inability of our manufacturers to deliver products in a timely manner and meet quality standards; |
• | fluctuations in product input costs; |
• | fluctuations in energy costs; |
• | increases in the costs of mailing, paper and printing; |
• | claims arising from our self-insurance; |
• | our ability to implement and maintain information technology systems; |
• | our failure to comply with regulatory requirements; |
• | tax matters; and |
• | legal and compliance matters. |
Limited Brands: | ||||
Investor Relations | Media Relations | |||
Amie Preston | Tammy Roberts Myers | |||
(614) 415-6704 | (614) 415-7072 | |||
apreston@limitedbrands.com | extcomm@limitedbrands.com |
LIMITED BRANDS, INC. AND SUBSIDIARIES | ||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||
THIRTEEN WEEKS ENDED APRIL 28, 2012 AND APRIL 30, 2011 | ||||||||
(Unaudited) | ||||||||
(In thousands except per share amounts) | ||||||||
2012 | 2011 | |||||||
Net Sales | $ | 2,153,784 | $ | 2,217,017 | ||||
Cost of Goods Sold, Buying & Occupancy | (1,251,821 | ) | (1,375,289 | ) | ||||
Gross Profit | 901,963 | 841,728 | ||||||
General, Administrative and Store Operating Expenses | (608,736 | ) | (624,905 | ) | ||||
Operating Income | 293,227 | 216,823 | ||||||
Interest Expense | (77,792 | ) | (54,668 | ) | ||||
Other (Expense) Income | (2,309 | ) | 86,487 | |||||
Income Before Income Taxes | 213,126 | 248,642 | ||||||
Provision for Income Taxes | 88,568 | 83,471 | ||||||
Net Income | $ | 124,558 | $ | 165,171 | ||||
Net Income Per Diluted Share | $ | 0.41 | $ | 0.50 | ||||
Weighted Average Shares Outstanding | 301,238 | 328,472 |
LIMITED BRANDS, INC. AND SUBSIDIARIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
THIRTEEN WEEKS ENDED APRIL 28, 2012 AND APRIL 30, 2011 | ||||||||||||||||
(Unaudited) | ||||||||||||||||
(In thousands except per share amounts) | ||||||||||||||||
2012 | 2011 | |||||||||||||||
Reported | Reported | Adjustments | Adjusted | |||||||||||||
Net Sales | $ | 2,153,784 | $ | 2,217,017 | $ | — | $ | 2,217,017 | ||||||||
Cost of Goods Sold, Buying & Occupancy | (1,251,821 | ) | (1,375,289 | ) | — | (1,375,289 | ) | |||||||||
Gross Profit | 901,963 | 841,728 | — | 841,728 | ||||||||||||
General, Administrative and Store Operating Expenses | (608,736 | ) | (624,905 | ) | 50,000 | (574,905 | ) | |||||||||
Operating Income | 293,227 | 216,823 | 50,000 | 266,823 | ||||||||||||
Interest Expense | (77,792 | ) | (54,668 | ) | — | (54,668 | ) | |||||||||
Other (Expense) Income | (2,309 | ) | 86,487 | (86,425 | ) | 62 | ||||||||||
Income Before Income Taxes | 213,126 | 248,642 | (36,425 | ) | 212,217 | |||||||||||
Provision for Income Taxes | 88,568 | 83,471 | (1,085 | ) | 82,386 | |||||||||||
Net Income | $ | 124,558 | $ | 165,171 | $ | (35,340 | ) | $ | 129,831 | |||||||
Net Income Per Diluted Share | $ | 0.41 | $ | 0.50 | $ | 0.40 | ||||||||||
Weighted Average Shares Outstanding | 301,238 | 328,472 | 328,472 | |||||||||||||
See Notes to Consolidated Statements of Income and Reconciliation of Adjusted Results for additional information. |
• | An $86.4 million pre-tax gain ($55.6 million net of tax), included in other income and expense, related to the sale of shares of Express, Inc. common stock. |
• | A $50.0 million pre-tax expense ($31.2 million net of tax), included in general, administrative and store operating expenses, related to a pledge to The Limited Brands Foundation. |
• | An $11.0 million tax benefit primarily related to the favorable resolution of certain discrete income tax matters. |