Limited Brands (NYSE: LTD) reported earnings on Aug. 15. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended July 28 (Q2), Limited Brands beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly and GAAP earnings per share dropped significantly.
Gross margins expanded, operating margins increased, net margins contracted.
Revenue details
Limited Brands reported revenue of $2.40 billion. The 15 analysts polled by S&P Capital IQ predicted net sales of $2.37 billion on the same basis. GAAP reported sales were 2.4% lower than the prior-year quarter's $2.46 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.50. The 22 earnings estimates compiled by S&P Capital IQ predicted $0.47 per share. GAAP EPS of $0.49 for Q2 were 33% lower than the prior-year quarter's $0.73 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 39.3%, 260 basis points better than the prior-year quarter. Operating margin was 12.7%, 480 basis points better than the prior-year quarter. Net margin was 6.0%, 340 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $2.03 billion. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $10.38 billion. The average EPS estimate is $2.85.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 565 members out of 668 rating the stock outperform, and 103 members rating it underperform. Among 213 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 193 give Limited Brands a green thumbs-up, and 20 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Limited Brands is outperform, with an average price target of $50.11.
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