Limited Brands' Comp Sales Up 3% - Analyst Blog
2013年4月16日 - 2:55AM
Zacks
Limited Brands
Inc. (LTD), a specialty retailer of women’s intimate and
other apparel, beauty and personal care products, posted
comparable-store sales growth of 3% for the five-week period ended
Apr 6, 2013, that betters analyst expectations.
However, we observe that the rate
of comps growth in March for this Zacks Rank #4 (Sell) stock
remained constant with that of February, but decelerated sharply
from an increase of 9% in Jan 2013. Management now projects
comparable-store sales to rise in the low single-digit for the
month of April, and hinted that with early Easter on Mar 31 this
year versus Apr 8 in the previous year would favorably impact April
comps.
Comparable-store sales for March
increased 2% at Victoria’s Secret Stores & Victoria’s Secret
Beauty, 7% at La Senza and 4% at Bath & Body Works & The
White Barn Candle Co. However, sales dropped 9% at Victoria’s
Secret Direct.
Limited Brands, which competes with
Hanesbrands Inc. (HBI), said that net sales for
March rose 6% to $894.8 million from $840.9 million posted in the
comparable prior-year month.
For the nine-week period ended Apr
6, 2013, comparable-store sales jumped 3%, whereas net sales rose
7.5% to $1,607 million from $1,495 million in the year-ago
period.
As a whole, Mar 2013 was tough for
most retailers as unfavorable weather conditions, higher taxes and
sluggish recovery in the labor market hurt consumers’ enthusiasm.
The retail chains like The Cato Corporation (CATO)
and The TJX Companies, Inc. (TJX) witnessed comps
decline of 11% and 2%, respectively.
However, analysts are of the view
that the calendar shift in Easter and expected fall in gasoline
prices coupled with tax refunds that are gradually making their way
in, could lead to a rise in discretionary spending and in turn
better comps in April.
Let’s
Conclude
Limited Brands’ Bath & Body
Works segment is gaining traction, driven by a rise in store
transactions, enhancement in the direct channel business and new
stores. Victoria’s Secret Stores have been performing well, and the
company is revamping its La Senza brand alongside.
Limited Brands is keen on
augmenting its retail footprint across the globe by expanding
aggressively in Canada and other international markets. Moreover,
the company’s strong liquidity positions it for growth and higher
returns. However, stiff competition and erratic consumer behavior
still remain matters of concern.
CATO CORP A (CATO): Free Stock Analysis Report
HANESBRANDS INC (HBI): Free Stock Analysis Report
L BRANDS INC (LTD): Free Stock Analysis Report
TJX COS INC NEW (TJX): Free Stock Analysis Report
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