-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Teva305rQ5z9THmDq2O45ll0aSq9g8EZgSqPcLrtEoJD7ciT3s2pSi7iixs3ZPJN L2eDovGv0yKpj0GOSDIgjQ== 0000950109-00-000632.txt : 20000228 0000950109-00-000632.hdr.sgml : 20000228 ACCESSION NUMBER: 0000950109-00-000632 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 8 CONFORMED PERIOD OF REPORT: 20000222 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20000225 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LIMITED INC CENTRAL INDEX KEY: 0000701985 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-WOMEN'S CLOTHING STORES [5621] IRS NUMBER: 311029810 STATE OF INCORPORATION: DE FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 033-22844 FILM NUMBER: 553851 BUSINESS ADDRESS: STREET 1: THREE LIMITED PKWY STREET 2: P O BOX 16000 CITY: COLUMBUS STATE: OH ZIP: 43230 BUSINESS PHONE: 6144797000 MAIL ADDRESS: STREET 1: THREE LIMITED PARKWAY STREET 2: P.O. BOX 16000 CITY: COLUMBUS STATE: OH ZIP: 43230 8-K 1 THE LIMITED, INC. ___________________________________________________ SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ------------- CURRENT REPORT FORM 8-K Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 February 22, 2000 Date of Report (Date of earliest event reported) THE LIMITED, INC. (Exact name of registrant as specified in its charter) ------------- Delaware 1-8344 31-1029810 (State or other (Commission (IRS Employer jurisdiction File no.) Identification No.) of incorporation) Three Limited Parkway P.O. Box 1600 Columbus, OH 43230 (614) 479-7000 (Address of principal executive offices) ___________________________________________________ Item 5. Other Events. On February 22, 2000, The Limited, Inc. (the "Company") issued the press release attached hereto as Exhibit 99. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits The Index to Exhibits at page E-1 is incorporated herein by reference. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. THE LIMITED, INC. /s/ V. Ann Hailey --------------------- V. Ann Hailey Executive Vice President and Chief Financial Officer Dated: February 22, 2000 INDEX TO EXHIBITS Exhibit Number Description - ------ ----------- 99. Press Release issued by The Limited, Inc. on February 22, 2000 99.1 Consolidated Statements of Income (Unaudited) 99.2 Consolidated Condensed Balance Sheets 99.3 Stores and Square Footage 99.4 Selling Square Footage 99.5 Quarterly Financial Data 99.6 Fourth Quarter 1999 Selected Data E-1 EX-99 2 PRESS RELEASE ISSUED BY THE LIMITED, INC. Exhibit 99 THE LIMITED, INC. REPORTS 1999 EARNINGS INCREASE OF 43%; SIGNIFICANTLY EXCEEDING WALL STREET EXPECTATIONS -AUTHORIZES $200 MILLION SHARE REPURCHASE PROGRAM- Columbus, Ohio (February 22, 2000) -- The Limited, Inc. (NYSE/LSE: LTD) announced today that fourth quarter and full year 1999 earnings improved significantly over the prior period. This improvement was driven by the improved performance of the Company's apparel brands, which consist of Express, Lerner New York, Lane Bryant, Limited Stores and Structure, as well as by the previously reported strength of Intimate Brands, Inc. (NYSE: IBI). Full Year Results - ----------------- On an adjusted basis, which excludes special items and reflects the August 1999 spin-off of Too, Inc. (TOO) and the May 1998 split-off of Abercrombie & Fitch Co. (ANF) as if they had occurred at the beginning of 1998, diluted earnings per share for the fifty-two weeks ended January 29, 2000 were $1.93, compared to $1.35 last year, an increase of 43%. These results significantly exceed the current Wall Street consensus estimate. The improved performance in 1999 is largely the result of a $176.9 million increase in operating income from the Company's apparel brands. Chairman and Chief Executive Officer Leslie H. Wexner commented, "We're pleased that our brand building efforts resulted in improved performance at each of our apparel brands for the year. This traction gained in 1999 fuels our optimism for continued earnings improvement at our apparel brands in the future." Adjusted 1999 sales were $9.500 billion compared to $8.814 billion last year, and comparable store sales increased 9%. Adjusted operating income increased 38% to $890.2 million from $643.5 million last year, and adjusted net income increased 40% to $445.5 million from $318.0 million in 1998. Fourth Quarter Results - ---------------------- Adjusted diluted earnings per share for the thirteen weeks ended January 29, 2000 were $1.31 compared to $0.92 last year, an increase of 42%. Adjusted fourth quarter 1999 sales were $3.287 billion compared to $3.133 billion last year, and comparable store sales increased 5%. Adjusted operating income increased 35% to $572.3 million from $423.5 million last year, and adjusted net income increased 37% to $294.9 million from $215.8 million last year. Please refer to the attached fourth quarter and full year income statements for results which include special items and the results of TOO and ANF through the dates of their separation from the Company. Authorization of Share Repurchase Program - ----------------------------------------- The Company also announced today that its Board of Directors has authorized a $200 million share repurchase program. The Company said it may repurchase shares from time to time in the open market or through privately negotiated transactions, depending on prevailing market conditions, alternative uses of capital and other factors. The Company has repurchased more than 147 million shares of its common stock since 1996. "Our decision to authorize a share repurchase program demonstrates our confidence in the strength of The Limited, Inc. and our future, and our commitment to creating sustained growth in shareholder value," stated Mr. Wexner. Change in Accounting - --------------------- On February 16, 2000, the Company announced a change in accounting for gift certificates, store credits and layaway sales. The Company, which was not contacted by the Securities and Exchange Commission (SEC), chose to address this matter after the issuance of SEC Staff Accounting Bulleting No. 101, Revenue Recognition in Financial Statements. The financial results above include the impact of this accounting change, which reduced fiscal 1999 earnings by $.04 per share and fiscal 1998 earnings by $.03 per share, and had no impact on reported cash flows, net sales or comparable store sales. For further information on this matter, including restated financial statements, please refer to the Current Report on Form 8-K filed by the Company with the SEC on February 17, 2000. The Limited, Inc., through Express, Lerner New York, Lane Bryant, Limited Stores, Structure and Henri Bendel, presently operates 2,913 specialty stores. The Company also owns approximately 84% of Intimate Brands, Inc. (NYSE: IBI), the leading specialty retailer of intimate apparel, beauty and personal care products through the Victoria's Secret, Bath & Body Works and White Barn Candle Co. brands. To hear the Company's live fourth quarter earnings conference call, log on to www.limited.com at 8:00 a.m. EST on Tuesday, February 22, 2000. To hear a - --------------- replay of the earnings call, dial 1-800-696-1585, followed by the ID code 189295, or log onto www.limited.com for an audio replay. --------------- SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: All forward-looking statements made by the Company involve material risks and uncertainties and are subject to change based on various important factors which may be beyond the Company's control. Accordingly, the Company's future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to; those described in the Company's filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized. # # # For further information, please contact: Tom Katzenmeyer Vice President Investor Relations The Limited, Inc. 614-415-7076 www.limited.com --------------- EX-99.1 3 CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) EXHIBIT 99.1 THE LIMITED, INC. and SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Thirteen Weeks Ended January 29, 2000 and January 30, 1999 (In thousands except per share data) The following adjusted results reflect the A&F split-off and Limited Too spin-off as if they had occurred at the beginning of 1998, and exclude special items.
================================================================ Actual Actual 1999 % of Sales 1998 % of Sales ---------- ---------- ---------- ---------- Net Sales $3,286,610 100.0% $3,132,651 100.0% ---------- ---------- ---------- ---------- Gross Income 1,306,213 39.7% 1,124,403 35.9% General, Administrative and Store Operating Expenses (733,874) (22.3%) (700,950) (22.4%) ---------- ---------- ---------- ---------- Operating Income 572,339 17.4% 423,453 13.5% Interest Expense (20,936) (0.6%) (19,299) (0.6%) Other Income, Net 13,542 0.4% 14,956 0.5% Minority Interest (44,057) (1.3%) (35,715) (1.1%) ---------- ---------- ---------- ---------- Income Before Income Taxes 520,888 15.8% 383,395 12.2% Income Taxes 226,000 6.9% 167,600 5.4% Effective Rate 43.4% 43.7% ---------- ---------- ---------- ---------- Net Income $ 294,888 9.0% $ 215,795 6.9% ========== ========== ========== ========== Adjusted Earnings Per Diluted Share Excluding Special Items $ 1.31 $ 0.92 ========== ========== Weighted Average Diluted Shares Outstanding 222,471 231,783 ================================================================
The following are the reported results.
Actual Actual 1999 % of Sales 1998 % of Sales ---------- ---------- ---------- ---------- Net Sales $3,286,610 100.0% $3,255,871 100.0% ---------- ---------- ---------- ---------- Gross Income 1,306,213 39.7% 1,170,843 36.0% General, Administrative and Store Operating Expenses (733,874) (22.3%) (726,611) (22.3%) Special & Nonrecurring Items, Net 36,576 1.1% - 0.0% ---------- ---------- ---------- ---------- Operating Income 608,915 18.5% 444,232 13.6% Interest Expense (20,936) (0.6%) (19,299) (0.6%) Other Income, Net 13,542 0.4% 14,956 0.5% Minority Interest (44,057) (1.3%) (35,715) (1.1%) ---------- ---------- ---------- ---------- Income Before Income Taxes 557,464 17.0% 404,174 12.4% Income Taxes 241,000 7.3% 176,000 5.4% Effective Rate 43.2% 43.5% ---------- ---------- ---------- ---------- Net Income $ 316,464 9.6% $ 228,174 7.0% ========== ========== ========== ========== Earnings Per Diluted Share - Reported $ 1.41 $ 0.97 ========== ========== Weighted Average Diluted Shares Outstanding 222,471 231,783 ========== ==========
See attached Note to Consolidated Statements of Income. THE LIMITED, INC. and SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Fifty-two Weeks Ended January 29, 2000 and January 30, 1999 (In thousands except per share data) The following adjusted results reflect the A&F split-off and Limited Too spin-off as if they had occurred at the beginning of 1998, and exclude special items.
================================================================= Actual Actual 1999 % of Sales 1998 % of Sales ----------- ---------- ----------- ---------- Net Sales $ 9,499,957 100.0% $ 8,813,633 100.0% ----------- ---------- ----------- ---------- Gross Income 3,282,492 34.6% 2,789,104 31.6% General, Administrative and Store Operating Expenses (2,392,324) (25.2%) (2,145,646) (24.3%) ----------- ---------- ----------- ---------- Operating Income 890,168 9.4% 643,458 7.3% Interest Expense (78,297) (0.8%) (68,528) (0.8%) Other Income, Net 51,037 0.5% 59,265 0.7% Minority Interest (72,623) (0.8%) (62,436) (0.7%) ----------- ---------- ----------- ---------- Income Before Income Taxes 790,285 8.3% 571,759 6.5% Income Taxes 344,800 3.6% 253,800 2.9% Effective Rate 43.6% 44.4% ----------- ---------- ----------- ---------- Net Income $ 445,485 4.7% $ 317,959 3.6% =========== ========== =========== ========== Adjusted Earnings Per Diluted Share Excluding Special Items $ 1.93 $ 1.35 =========== =========== Weighted Average Diluted Shares Outstanding 227,782 232,481 =================================================================
The following are the reported results.
================================================================= Actual Actual 1999 % of Sales 1998 % of Sales ----------- ---------- ----------- ---------- Net Sales $ 9,723,334 100.0% $ 9,346,911 100.0% ----------- ---------- ----------- ---------- Gross Income 3,357,477 34.5% 2,971,260 31.8% General, Administrative and Store Operating Expenses (2,460,338) (25.3%) (2,286,917) (24.5%) Special and Nonrecurring Items 23,501 0.2% 1,740,030 18.6% ----------- ---------- ----------- ---------- Operating Income 920,640 9.5% 2,424,373 25.9% Interest Expense (78,297) (0.8%) (68,528) (0.7%) Other Income, Net 51,037 0.5% 59,265 0.6% Minority Interest (72,623) (0.7%) (63,616) (0.7%) Gain on Sale of Subsidiary Stock 11,002 0.1% - - ----------- ---------- ----------- ---------- Income Before Income Taxes 831,759 8.6% 2,351,494 25.2% Income Taxes 371,000 3.8% 305,000 3.3% Effective Rate 44.6% 13.0% ----------- ---------- ----------- ---------- Net Income $ 460,759 4.7% $ 2,046,494 21.9% =========== ========== =========== ========== Earnings Per Diluted Share - Reported $ 2.00 $ 8.29 =========== =========== Weighted Average Diluted Shares Outstanding 227,782 246,319 =========== ===========
See attached Note to Consolidated Statements of Income. THE LIMITED INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED STATEMENTS OF INCOME SPECIAL ITEMS As part of the Company's ongoing strategy to enhance shareholder value, the Company recorded the following special items in 1999 and 1998. These items, net of any tax and minority interest impacts, are excluded from the "Adjusted Results" provided in the Consolidated Statements of Income attached. 1999 . In the fourth quarter of 1999, the Company reversed a previous year $36.6 million special and nonrecurring charge associated with downsizing the remaining Henri Bendel store. The reversal was precipitated by the Company's inability to complete its restructuring plan in regards to this one store. The accounting for the reversal followed recently issued SEC Staff Accounting Bulletin No. 100, "Restructurings and Impairment Charges." The charge and reversal had no affect on cash flows in any period. . In the third quarter of 1999, the Company recognized an $11.0 million gain from the sale of a 60% interest in Galyan's Trading Co., offset by a $6.0 million provision for taxes on the gain. In addition, the new tax basis of the Company's continuing Galyan's investment resulted in an additional $7 million tax liability. . In the second quarter of 1999, the Company recognized a $13.1 million special and nonrecurring charge for transaction costs related to the Limited Too spin-off. 1998 . In the second quarter of 1998, the Company recognized a $1.651 billion gain on the split-off of Abercrombie & Fitch ("A&F"). . In the first quarter of 1998, the Company recognized a $93.7 million gain relating to the sale of the Company's remaining interest in Brylane, Inc. and a $5.1 million charge for associate termination costs at Henri Bendel. Additionally, Limited Too and A&F results (net of minority interest) are excluded from all periods presented and total weighted average shares outstanding are reduced as of the beginning of 1998 by the 47.1 million Limited shares tendered in the A&F split-off transaction. EX-99.2 4 CONSOLIDATED CONDENSED BALANCE SHEETS EXHIBIT 99.2 THE LIMITED, INC. and SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS (In thousands)
January 29, 2000 January 30, 1999 ---------------- ---------------- (Unaudited) ASSETS Current Assets Cash and Equivalents $ 817,268 $ 870,317 Accounts Receivable 108,794 77,715 Inventories 1,050,913 1,119,670 Other 269,302 239,177 ---------- ---------- Total Current Assets 2,246,277 2,306,879 Property and Equipment, Net 1,229,612 1,361,761 Restricted Cash - 351,600 Deferred Income Taxes 125,145 48,782 Other Assets 486,655 480,686 ---------- ---------- TOTAL ASSETS $4,087,689 $4,549,708 ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts Payable $256,306 $289,947 Current Portion of Long-Term Debt 250,000 100,000 Accrued Expenses 703,930 801,415 Income Taxes 152,458 128,273 ---------- ---------- Total Current Liabilities 1,362,694 1,319,635 Long-Term Debt 400,000 550,000 Other Long-Term Liabilities 58,910 56,010 Minority Interest 119,008 105,504 Contingent Stock Redemption Agreement - 351,600 Shareholders' Equity 2,147,077 2,166,959 ---------- ---------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $4,087,689 $4,549,708 ========== ==========
EX-99.3 5 STORES AND SQUARE FOOTAGE Exhibit 99.3 THE LIMITED, INC.and SUBSIDIARIES STORES AND SQUARE FOOTAGE At January 29, 2000 and January 30, 1999
January 29, 2000 January 30, 1999 ----------------------------- ----------------------------- Stores SQ. FT. (000's) Stores SQ. FT. (000's) ------ -------------- ------ -------------- Victoria's Secret 896 3,966 829 3,702 Bath & Body Works 1,214 2,486 1,061 2,092 Express 688 4,429 702 4,511 Lerner New York 594 4,592 643 5,000 Lane Bryant 688 3,343 730 3,517 Limited Stores 443 2,749 551 3,371 Henri Bendel 1 35 1 35 Structure 499 1,978 532 2,118 Limited Too - - 319 1,006 Galyan's - - 14 964 ----------------------------- ----------------------------- Total 5,023 23,578 5,382 26,316 ============================= =============================
EX-99.4 6 SELLING SQUARE FOOTAGE EXHIBIT 99.4
- ------------------------------------------------------------------------------------------------------------------------ THE LIMITED, INC. SELLING SQUARE FOOTAGE (END OF YEAR) 1998 - 2000 - ------------------------------------------------------------------------------------------------------------------ ACTUAL 1998 ACTUAL 1999 PROJ 2000 ----------------------------------------------------------------------- STORES % CHG STORES % CHG STORES % CHG DIVISION & SQFT TO LY & SQFT TO LY & SQFT TO LY - ------------------------------------------------------------------------------------------------------------------ INTIMATE BRANDS - ------------------------------ VICTORIA'S SECRET NO. OF STORES 829 5% 896 8% 976 9% TOTAL SSF 3,702,000 4% 3,966,000 7% 4,336,000 9% AVERAGE SSF 4,466 -1% 4,426 -1% 4,443 0% BATH & BODY NO. OF STORES 1,061 15% 1,214 14% 1,396 15% TOTAL SSF 2,092,000 18% 2,486,000 19% 3,008,000 21% AVERAGE SSF 1,972 2% 2,048 4% 2,155 5% TOTAL INTIMATE BRANDS NO. OF STORES 1,890 11% 2,110 12% 2,372 12% TOTAL SSF 5,794,000 9% 6,452,000 11% 7,344,000 14% AVERAGE SSF 3,066 -2% 3,058 0% 3,096 1% - ------------------------------------------------------------------------------------------------------------------ APPAREL - ------------------------------ EXPRESS NO. OF STORES 702 -7% 688 -2% 680 -1% TOTAL SSF 4,511,000 -5% 4,429,000 -2% 4,377,000 -1% AVERAGE SSF 6,426 2% 6,438 0% 6,437 0% LERNER NO. OF STORES 643 -14% 594 -8% 578 -3% TOTAL SSF 5,000,000 -12% 4,592,000 -8% 4,392,000 -4% AVERAGE SSF 7,776 2% 7,731 -1% 7,599 -2% LANE BRYANT NO. OF STORES 730 -6% 688 -6% 698 1% TOTAL SSF 3,517,000 -6% 3,343,000 -5% 3,392,000 1% AVERAGE SSF 4,818 0% 4,859 1% 4,860 0% LIMITED STORES NO. OF STORES 551 -12% 443 -20% 415 -6% TOTAL SSF 3,371,000 -11% 2,749,000 -18% 2,546,000 -7% AVERAGE SSF 6,118 2% 6,205 1% 6,135 -1% STRUCTURE NO. OF STORES 532 -2% 499 -6% 487 -2% TOTAL SSF 2,118,000 -1% 1,978,000 -7% 1,936,000 -2% AVERAGE SSF 3,981 1% 3,964 0% 3,975 0% ------------------------------------------------------------------------------------ TOTAL APPAREL NO. OF STORES 3,158 -16% 2,912 -8% 2,858 -2% TOTAL SSF 18,517,000 -12% 17,091,000 -8% 16,643,000 -3% AVERAGE SSF 5,864 4% 5,869 0% 5,823 -1% - ------------------------------------------------------------------------------------------------------------------ OTHER - ------------------------------ HENRI BENDEL NO. OF STORES 1 -83% 1 0% 1 0% TOTAL SSF 35,000 -69% 35,000 0% 35,000 0% AVERAGE SSF 35,000 86% 35,000 0% 35,000 0% GALYAN'S NO. OF STORES 14 27% 0 -100% 0 0% TOTAL SSF 964,000 50% 0 -100% 0 0% AVERAGE SSF 68,857 18% 0 -100% 0 0% LIMITED TOO NO. OF STORES 319 2% 0 -100% 0 0% TOTAL SSF 1,006,000 3% 0 -100% 0 0% AVERAGE SSF 3,154 1% 0 -100% 0 0% ------------------------------------------------------------------------------------ TOTAL OTHER NO. OF STORES 334 93% 1 -100% 1 0% TOTAL SSF 2,005,000 1% 35,000 -98% 35,000 0% AVERAGE SSF 6,003 -48% 35,000 483% 35,000 0% - ------------------------------------------------------------------------------------------------------------------ GRAND TOTAL - ------------------------------ NO. OF STORES 5,382 -5% 5,023 -7% 5,231 4% TOTAL SSF 26,316,000 -7% 23,578,000 -10% 24,022,000 2% AVERAGE SSF 4,890 -3% 4,694 -4% 4,592 -2% - ------------------------------------------------------------------------------------------------------------------ CHANGE TO LAST YEAR - ------------------------------ NEW STORES 251 295 316 REMODELED STORES 125 270 262 CLOSED STORES (350) (301) (108) ----------------------------------------------------------------------------------- NET ADDITION (99) (6) 208 DISPOSAL OF ASSETS (159) (353) 0 ---------------- ---------- ---------- FINAL CHANGE TO STORE COUNT (258) (359) 208 TOTAL SSF (2,084,000) (2,738,000) 443,000 - ------------------------------------------------------------------------------------------------------------------
12 THE LIMITED, INC. 2000 BEST ESTIMATE STORE AND SQUARE FOOTAGE CHANGES
- ---------------------------------------------------------------------------- STORE AND INCR SELLING [ ]' SQUARE FOOTAGE ------------------------- CHANGES BY BUSINESS # STORES TOTAL AVG - ---------------------------------------------------------------------------- VICTORIA'S SECRET NEW STORES 85 348,000 4,094 REMODELED STORES 36 40,000 1,111 CLOSED STORES (5) (18,000) 3,600 ------------------------------------- NET ADDITION 80 370,000 BATH & BODY NEW STORES 190 467,000 2,458 REMODELED STORES 45 72,000 1,600 CLOSED STORES (8) (17,000) 2,125 ------------------------------------- NET ADDITION 182 522,000 TOTAL INTIMATE BRANDS NEW STORES 275 815,000 2,964 REMODELED STORES 81 112,000 1,383 CLOSED STORES (13) (35,000) 2,692 ------------------------------------- NET ADDITION 262 892,000 - ---------------------------------------------------------------------------- EXPRESS NEW STORES 10 78,600 7,860 REMODELED STORES 60 (11,681) 195 CLOSED STORES (18) (119,376) 6,632 ------------------------------------- NET ADDITION (8) (52,457) LERNER NEW STORES 5 32,390 6,478 REMODELED STORES 28 (83,000) 2,964 CLOSED STORES (21) (149,856) 7,136 ------------------------------------- NET ADDITION (16) (200,466) LANE BRYANT NEW STORES 25 137,900 5,516 REMODELED STORES 60 (15,021) 250 CLOSED STORES (15) (73,620) 4,908 ------------------------------------- NET ADDITION 10 49,259 LIMITED STORES NEW STORES 0 0 0 REMODELED STORES 25 (16,000) 640 CLOSED STORES (28) (186,676) 6,667 ------------------------------------- NET ADDITION (28) (202,676) STRUCTURE NEW STORES 1 5,000 5,000 REMODELED STORES 8 (3,520) 440 CLOSED STORES (13) (43,680) 3,360 ------------------------------------- NET ADDITION (12) (42,200) TOTAL APPAREL NEW STORES 41 253,890 6,192 REMODELED STORES 181 (129,222) 714 CLOSED STORES (95) (573,208) 6,034 ------------------------------------- NET ADDITION (54) (448,540) - ---------------------------------------------------------------------------- HENRI BENDEL NEW STORES 0 0 0 REMODELED STORES 0 0 0 CLOSED STORES 0 0 0 ------------------------------------- NET ADDITION 0 0 0 ------------------------------------- TOTAL OTHER NEW STORES 0 0 0 REMODELED STORES 0 0 0 CLOSED STORES 0 0 0 ------------------------------------- NET ADDITION 0 0 - ---------------------------------------------------------------------------- TOTAL NEW STORES 316 1,068,890 3,383 REMODELED STORES 262 (17,222) 66 CLOSED STORES (108) (608,208) 5,632 ------------------------------------- NET ADDITION 208 443,460 - ----------------------------------------------------------------------------
EX-99.5 7 QUARTERLY FINANCIAL DATA EXHIBIT 99.5 THE LIMITED, INC. QUARTERLY FINANCIAL INFORMATION NOTE: ADJUSTED RESULTS EXCLUDE TOO AND ANF
PERIOD 1998 1999 ---- ---- 1. Net Sales % Inc/(Dec) % Inc/(Dec) 1st Qtr 2,008,077 9.7% 2,104,798 4.8% Adjusted 1st Qtr 1,791,590 6.7% 2,009,750 12.2% 2nd Qtr 2,083,101 3.1% 2,267,821 8.9% Adjusted 2nd Qtr 1,986,250 6.6% 2,180,957 9.8% 3rd Qtr 1,999,862 -3.4% 2,064,105 3.2% Adjusted 3rd Qtr 1,903,142 4.0% 2,022,640 6.3% 4th Qtr 3,255,871 -0.4% 3,286,610 0.9% Adjusted 4th Qtr 3,132,651 6.5% 3,286,610 4.9% Year 9,346,911 1.7% 9,723,334 4.0% Adjusted Year 8,813,633 6.0% 9,499,957 7.8% 6 Mos 4,091,178 6.3% 4,372,619 6.9% Adjusted 6 Mos 3,777,840 6.7% 4,190,707 10.9% 9 Mos 6,091,040 2.9% 6,436,724 5.7% Adjusted 9 Mos 5,680,982 5.8% 6,213,347 9.4% 2. Net Sales- Apparel % Inc/(Dec) % Inc/(Dec) 1st Qtr 973,044 4.6% 1,063,228 9.3% 2nd Qtr 1,057,520 6.6% 1,077,704 1.9% 3rd Qtr 1,135,581 4.0% 1,170,214 3.0% 4th Qtr 1,501,884 2.1% 1,474,182 -1.8% Year 4,668,029 4.1% 4,785,528 2.5% 6 Mos 2,030,564 5.6% 2,140,932 5.4% 9 Mos 3,166,145 5.1% 3,311,146 4.6% 3. Cost of Goods Sold, Occupancy and Buying Costs (% of Sales) (% of Sales) 1st Qtr 1,426,422 71.0% 1,451,430 69.0% Adjusted 1st Qtr 1,284,034 71.7% 1,388,106 69.1% 2nd Qtr 1,473,517 70.7% 1,540,174 67.9% Adjusted 2nd Qtr 1,408,413 70.9% 1,481,916 67.9% 3rd Qtr 1,390,684 69.5% 1,393,856 67.5% Adjusted 3rd Qtr 1,323,834 69.6% 1,367,046 67.6% 4th Qtr 2,085,028 64.0% 1,980,397 60.3% Adjusted 4th Qtr 2,008,248 64.1% 1,980,397 60.3% Year 6,375,651 68.2% 6,365,857 65.5% Adjusted Year 6,024,529 68.4% 6,217,465 65.4% 6 Mos 2,899,939 70.9% 2,991,604 68.4% Adjusted 6 Mos 2,692,447 71.3% 2,870,022 68.5% 9 Mos 4,290,623 70.4% 4,385,460 68.1% Adjusted 9 Mos 4,016,281 70.7% 4,237,068 68.2% 4. Gross Income (% of Sales) (% of Sales) 1st Qtr 581,655 29.0% 653,368 31.0% Adjusted 1st Qtr 507,556 28.3% 621,644 30.9% 2nd Qtr 609,584 29.3% 727,647 32.1% Adjusted 2nd Qtr 577,837 29.1% 699,041 32.1% 3rd Qtr 609,178 30.5% 670,249 32.5% Adjusted 3rd Qtr 579,308 30.4% 655,594 32.4% 4th Qtr 1,170,843 36.0% 1,306,213 39.7% Adjusted 4th Qtr 1,124,403 35.9% 1,306,213 39.7% Year 2,971,260 31.8% 3,357,477 34.5% Adjusted Year 2,789,104 31.6% 3,282,492 34.6% 6 Mos 1,191,239 29.1% 1,381,015 31.6% Adjusted 6 Mos 1,085,393 28.7% 1,320,685 31.5% 9 Mos 1,800,417 29.6% 2,051,264 31.9% Adjusted 9 Mos 1,664,701 29.3% 1,976,279 31.8% 5. General Administrative & Store Operating Expenses (% 0f Sales) (% of Sales) 1st Qtr 507,208 25.3% 563,038 26.8% Adjusted 1st Qtr 443,737 24.8% 532,626 26.5% 2nd Qtr 526,106 25.3% 587,371 25.9% Adjusted 2nd Qtr 496,789 25.0% 560,469 25.7% 3rd Qtr 526,992 26.4% 576,055 27.9% Adjusted 3rd Qtr 504,170 26.5% 565,355 28.0% 4th Qtr 726,611 22.3% 733,874 22.3% Adjusted 4th Qtr 700,950 22.4% 733,874 22.3%
THE LIMITED, INC. QUARTERLY FINANCIAL INFORMATION NOTE: ADJUSTED RESULTS EXCLUDE TOO AND ANF
PERIOD 1998 1999 ---- ---- Year 2,286,917 24.5% 2,460,338 25.3% Adjusted Year 2,145,646 24.3% 2,392,324 25.2% 6 Mos 1,033,314 25.3% 1,150,409 26.3% Adjusted 6 Mos 940,526 24.9% 1,093,095 26.1% 9 Mos 1,560,306 25.6% 1,726,464 26.8% Adjusted 9 Mos 1,444,696 25.4% 1,658,450 26.7% 6. Operating Income - Consolidated (% of Sales) (% of Sales) 1st Qtr 163,080 8.1% 90,330 4.3% 1st Qtr Excluding special and nonrecurring items 74,447 3.7% 90,330 4.3% Adjusted 1st Qtr Excluding special and nonrecurring items 63,819 3.6% 89,018 4.4% 2nd Qtr 1,734,875 83.3% 127,201 5.6% Adjusted 2nd Qtr Excluding special and nonrecurring item 81,048 4.1% 138,572 6.4% 3rd Qtr 82,186 4.1% 94,194 4.6% 3rd Qtr Excluding special and nonrecurring items 82,186 4.1% 94,194 4.6% Adjusted 3rd Qtr Excluding special and nonrecurring items 75,138 3.9% 90,239 4.5% 4th Qtr 444,232 13.6% 608,915 18.5% 4th Qtr Excluding special and nonrecurring items 444,232 13.6% 572,339 17.4% Adjusted 4th Qtr Excluding special and nonrecurring items 423,453 13.5% 572,339 17.4% Year 2,424,373 25.9% 920,640 9.5% Year Excluding special and nonrecurring items 684,343 7.3% 897,139 9.2% Adjusted Year Excluding special and nonrecurring items 643,458 7.3% 890,168 9.4% 6 Mos 1,897,955 46.4% 217,531 5.0% Adjusted 6 Mos Excluding special and nonrecurring items 144,867 3.8% 227,590 5.4% 9 Mos 1,980,141 32.5% 311,725 4.8% Adjusted 9 Mos Excluding special and nonrecurring items 220,005 3.9% 317,829 5.1% 7. Operating Income - Apparel (% of Apparel Sales) (% of Apparel Sales) 1st Qtr (19,854) -1.9% 1,298 0.1% 2nd Qtr (50,973) -4.4% (11,362) -1.1% 3rd Qtr (1,120) -0.1% 22,540 1.9% 4th Qtr 26,794 1.8% 119,252 8.1% Year (45,153) -1.0% 131,728 2.8% 6 Mos (70,827) -3.2% (10,064) -0.5% 9 Mos (71,947) -2.1% 12,476 0.4% 8. Interest Expense (% of Sales) (% of Sales) 1st Qtr 15,741 0.8% 16,790 0.8% 2nd Qtr 16,414 0.8% 20,159 0.9% 3rd Qtr 17,074 0.9% 20,412 1.0% 4th Qtr 19,299 0.6% 20,936 1.0% Year 68,528 0.7% 78,297 0.8% 6 Mos 32,155 0.8% 36,949 0.8% 9 Mos 49,229 0.8% 57,361 0.9%
2 THE LIMITED, INC. QUARTERLY FINANCIAL INFORMATION NOTE: ADJUSTED RESULTS EXCLUDE TOO AND ANF
PERIOD 1998 1999 ---- ---- 9. Other Income, Net (% of Sales) (% of Sales) 1st Qtr 16,153 0.8% 15,331 0.7% 2nd Qtr 15,595 0.7% 12,509 0.6% 3rd Qtr 12,561 0.6% 9,655 0.5% 4th Qtr 14,956 0.5% 13,542 0.4% Year 59,265 0.6% 51,037 0.5% 6 Mos 31,748 0.8% 27,840 0.6% 9 Mos 44,309 0.7% 37,495 0.6% 10. Minority Interest (% of Sales) (% of Sales) 1st Qtr 8,833 0.4% 8,420 0.4% Adjusted 1st Qtr 7,836 0.4% 8,420 0.4% 2nd Qtr 12,988 0.6% 14,069 0.6% Adjusted 2nd Qtr 12,805 0.6% 14,069 0.6% 3rd Qtr 6,080 0.3% 6,077 0.3% 4th Qtr 35,715 1.1% 44,057 1.3% Year 63,616 0.7% 72,623 0.7% Adjusted Year 62,436 0.7% 72,623 0.8% 6 Mos 21,821 0.5% 22,489 0.5% Adjusted 6 Mos 20,641 0.5% 22,489 0.5% 9 Mos 27,901 0.5% 28,566 0.4% Adjusted 9 Mos 26,721 0.5% 28,566 0.5% 11. Income Before Income Taxes (% of Sales) (% of Sales) 1st Qtr 154,659 7.7% 80,451 3.8% 1st Qtr excluding special and nonrecurring items 66,026 3.3% 80,451 3.8% Adjusted 1st Qtr excluding special and nonrecurring items 56,395 3.1% 79,139 3.9% 2nd Qtr 1,721,068 82.6% 105,482 4.7% 2nd Qtr excluding special and nonrecurring items 69,671 3.3% 118,557 5.2% Adjusted 2nd Qtr excluding special and nonrecurring items 67,424 3.4% 116,853 5.4% 3rd Qtr 71,593 3.6% 88,362 4.3% 3rd Qtr excluding special items 71,593 3.6% 77,360 3.7% Adjusted 3rd Qtr excluding special items 64,545 3.4% 73,405 3.6% 4th Qtr 404,174 12.4% 557,464 17.0% 4th Qtr excluding special and nonrecurring items 404,174 12.4% 520,888 15.8% Adjusted 4th Qtr excluding special and nonrecurring items 383,395 12.2% 520,888 15.8% Year 2,351,494 25.2% 831,759 8.6% Year excluding special items 611,464 6.5% 797,256 8.2% Adjusted Year excluding special items 571,759 6.5% 790,285 8.3% 6 Mos 1,875,727 45.8% 185,933 4.3% 6 Mos excluding special and nonrecurring items 135,697 3.3% 199,008 4.6% Adjusted 6 Mos excluding special and nonrecurring items 123,819 3.3% 195,992 4.7% 9 Mos 1,947,320 32.0% 274,295 4.3% 9 Mos excluding special items 207,290 3.4% 276,368 4.3% Adjusted 9 Mos excluding special items 188,364 3.3% 269,397 4.3% 12. Provision for Income Taxes (Tax Rate) (Tax Rate) 1st Qtr 65,000 42.0% 35,000 43.5% 2nd Qtr 33,000 1.9% 48,000 45.5% 3rd Qtr 31,000 43.3% 47,000 53.2% 4th Qtr 176,000 43.5% 241,000 43.2% Year 305,000 13.0% 371,000 44.6% 6 Mos 98,000 5.2% 83,000 44.6% 9 Mos 129,000 6.6% 130,000 47.4%
3 THE LIMITED, INC. QUARTERLY FINANCIAL INFORMATION NOTE: ADJUSTED RESULTS EXCLUDE TOO AND ANF
PERIOD 1998 1999 ---- ---- 13. Net Income (% of Sales) (% of Sales) 1st Qtr 89,659 4.5% 45,451 2.2% 1st Qtr excluding special and nonrecurring items 36,026 1.8% 45,451 2.2% Adjusted 1st Qtr excluding special and nonrecurring items 30,495 1.7% 44,639 2.2% 2nd Qtr 1,688,068 81.0% 57,482 2.5% 2nd Qtr excluding special and nonrecurring items 36,671 1.8% 65,557 2.9% Adjusted 2nd Qtr excluding special and nonrecurring items 35,324 1.8% 64,553 3.0% 3rd Qtr 40,593 2.0% 41,362 2.0% 3rd Qtr excluding special items 40,593 2.0% 43,360 2.1% Adjusted 3rd Qtr excluding special items 36,345 1.9% 41,405 2.0% 4th Qtr 228,174 7.0% 316,464 9.6% 4th Qtr excluding special and nonrecurring items 228,174 7.0% 294,888 9.0% Adjusted 4th Qtr excluding special and nonrecurring items 215,795 6.9% 294,888 9.0% Year 2,046,494 21.9% 460,759 4.7% Year excluding special items 341,464 3.7% 449,256 4.6% Adjusted Year excluding special items 317,959 3.6% 445,485 4.7% 6 Mos 1,777,727 43.5% 102,933 2.4% 6 Mos excluding gain on special and nonrecurring items 72,697 1.8% 111,008 2.5% Adjusted 6 Mos excluding special and nonrecurring items 65,819 1.7% 109,192 2.6% 9 Mos 1,818,320 29.9% 144,295 2.2% 9 Mos excluding special items 113,290 1.9% 154,368 2.4% Adjusted 9 Mos excluding special items 102,164 1.8% 150,597 2.4% 14. Net Income % Inc/(Dec) % Inc/(Dec) 1st Qtr 89,659 170.2% 45,451 -49.3% 1st Qtr excluding special and nonrecurring items 36,026 30.6% 45,451 26.2% Adjusted 1st Qtr excluding special and nonrecurring items 30,495 16.8% 44,639 46.4% 2nd Qtr 1,688,068 5294.9% 57,482 -96.6% 2nd Qtr excluding special and nonrecurring items 36,671 17.2% 65,557 78.8% Adjusted 2nd Qtr excluding special and noncurring items 35,324 23.1% 64,553 82.7% 3rd Qtr 40,593 -49.1% 41,362 1.9% 3rd Qtr excluding special items 40,593 43,360 6.8% Adjusted 3rd Qtr excluding special items 36,345 24.7% 41,405 13.9% 4th Qtr 228,174 238.3% 316,464 38.7% 4th Qtr excluding special and nonrecurring items 228,174 294,888 29.2% Adjusted 4th Qtr excluding special and nonrecurring items 215,795 11.4% 294,888 36.7% Year 2,046,494 866.9% 460,759 -77.5% Year Excluding special items 341,464 3.7% 449,256 31.6% Adjusted Year excluding special items 317,959 14.6% 445,485 40.2% 6 Mos 1,777,727 2657.4% 102,933 -94.2% 6 Mos excluding special and nonrecurring items 72,697 23.5% 111,008 52.7% Adjusted 6 Mos excluding special and nonrecurring items 65,819 20.1% 109,192 65.9% 9 Mos 1,818,320 1160.9% 144,295 -92.1% 9 Mos excluding special items 113,290 12.4% 154,368 36.3% Adjusted 9 Mos excluding special items 102,164 21.8% 150,597 47.4%
4 THE LIMITED, INC. QUARTERLY FINANCIAL INFORMATION NOTE: ADJUSTED RESULTS EXCLUDE TOO AND ANF
PERIOD 1998 1999 ---- ---- 15. Diluted Earnings Per Share % Inc/(Dec) % Inc/(Dec) 1st Qtr $0.32 166.7% $0.19 -40.6% 1st Qtr excluding special and nonrecurring items $0.13 26.0% $0.19 46.2% Adjusted 1st Qtr excluding special and nonrecurring items $0.13 11.9% $0.19 46.2% 2nd Qtr $6.94 6209.1% $0.24 -96.5% 2nd Qtr excluding special and nonrecurring items $0.15 30.0% $0.28 86.7% Adjusted 2nd Qtr excluding special and nonrecurring items $0.15 16.9% $0.27 80.0% 3rd Qtr $0.17 -41.4% $0.18 5.9% 3rd Qtr excluding special items $0.17 14.7% $0.19 11.8% Adjusted 3rd Qtr excluding special items $0.15 22.6% $0.18 20.0% 4th Qtr $0.97 304.2% $1.41 45.4% 4th Qtr excluding special and nonrecurring items $0.97 14.9% $1.31 35.1% Adjusted 4th Qtr excluding special and nonrecurring items $0.92 9.3% $1.31 42.4% Year $8.29 976.6% $2.00 -75.9% Year excluding special items $1.37 12.3% $1.95 42.3% Adjusted Year excluding special items $1.35 10.9% $1.93 42.8% 6 Mos $6.80 2733.3% $0.43 -93.7% 6 Mos excluding special and nonrecurring items $0.28 27.6% $0.47 67.9% Adjusted 6 Mos excluding special and nonrecurring items $0.28 14.8% $0.46 64.3% 9 Mos $7.24 1266.0% $0.62 -91.4% 9 Mos excluding special and nonrecurring items $0.45 21.7% $0.66 46.7% Adjusted 9 Mos excluding special items $0.44 17.8% $0.65 47.7% 16. Weighted Average Diluted Shares Outstanding 1st Qtr 279,362 235,547 Adjusted 1st Qtr 232,287 235,547 2nd Qtr 243,079 230,226 Adjusted 2nd Qtr 234,802 230,226 3rd Qtr 231,052 222,884 Adjusted 3rd Qtr 231,052 222,884 4th Qtr 231,783 222,471 Adjusted 4th Qtr 231,783 222,471 Year 246,319 227,782 Adjusted Year 232,481 227,782 6 Mos 261,221 232,887 Adjusted 6 Mos 233,545 232,887 9 Mos 251,164 229,552 Adjusted 9 Mos 232,714 229,552 17. Weighted Average Shares Outstanding - No Dilution 1st Qtr 273,838 227,732 2nd Qtr 236,132 221,029 3rd Qtr 227,313 214,711 4th Qtr 226,347 214,855
5 THE LIMITED, INC. QUARTERLY FINANCIAL INFORMATION NOTE: ADJUSTED RESULTS EXCLUDE TOO AND ANF
PERIOD 1998 1999 ---- ---- 18. Dividends per Share % Inc/(Dec) %Inc/(Dec) 1st Qtr 0.13 8.3% 0.15 15.4% 2nd Qtr 0.13 8.3% 0.15 15.4% 3rd Qtr 0.13 8.3% 0.15 15.4% 4th Qtr 0.13 8.3% 0.15 15.4% Year 0.52 8.3% 0.60 15.4% 6 Mos 0.26 8.3% 0.30 15.4% 9 Mos 0.39 8.3% 0.45 15.4%
6 EX-99.6 8 FOURTH QUARTER 1999 SELECTED DATA Exhibit 99.6 THE LIMITED INC. and SUBSIDIARIES Fourth Quarter 1999 Selected Data
1999 1998 -------------- -------------- Capital Expenditures (000) First Quarter 95,260 58,213 Second Quarter 96,492 64,720 -------------- -------------- Spring Season 191,752 122,933 Third Quarter 97,241 163,387 Fourth Quarter 86,402 61,036 -------------- -------------- Year 375,395 347,356 Depreciation & Amortization (000) First Quarter 75,441 74,722 Second Quarter 68,310 69,640 -------------- -------------- Spring Season 143,751 144,362 Third Quarter 64,597 69,784 Fourth Quarter 64,095 71,854 -------------- -------------- Year 272,443 286,000 Long-Term Debt to Equity Ratio 18.6% 25.4% Interest Expense (000) First Quarter 16,790 15,741 Second Quarter 20,159 16,414 -------------- -------------- Spring Season 36,949 32,155 Third Quarter 20,412 17,074 Fourth Quarter 20,936 19,299 -------------- -------------- Year 78,297 68,528 Other Income (000) First Quarter 15,331 16,153 Second Quarter 12,509 15,595 -------------- -------------- Spring Season 27,840 31,748 Third Quarter 9,655 12,561 Fourth Quarter 13,542 14,956 -------------- -------------- Year 51,037 59,265
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