Superstorm Sandy put a damper on November sales of many
retailers, butLimited Brands (
) was one bright spot.
The parent of Victoria's Secret, Bath & Body Works and
Pink said its comparable same-store sales for the four weeks
ended Nov. 24 rose 5% to $922 million, beating a 3.4% estimate by
research firm Retail Metrics. Bad weather brought on by Sandy
hurt sales by 1 to 2 percentage points.
Victoria's Secret and Bath & Body Works, which make up the
bulk of its total revenue, had record Thanksgiving-weekend
Despite strength in November, overall results have been
lackluster in the latest three quarters. Earnings have grown by
single digits, while sales fell by single digits.
In its latest results from earlier this month, Limited Brands
reported that its Q3 profit rose 4% to 26 cents a share. Revenue
fell 6% to $2.05 billion.
But Limited Brands raised its full-year profit outlook to
$2.78 to $2.93 a share, or up 6.9% to 12.7%, from a year ago. And
it unveiled a $250 million stock buyback program.
The company hit some rough spots in recent years, but has
since delivered two straight years of earnings and sales gains.
Limited Brands has a three-year Earnings Stability Factor of
The retailer has paid dividends for about 38 years and has
steadily increased its payout over time. The company's last hiked
its dividend in late January to $1 a share annually, up from 80
cents a share.
Limited Brands has a 1.9% annualized yield, which is about
average among the 22 dividend-paying firms in the
The company has also paid a number of specials dividends in
recent years. In September, it gave shareholders a special payout
of $1 a share.
Limited Brands is holding near a record high and has formed a
cup-like base with a 52.30 buy point. Technically, the base sits
next to another deeper base.
The stock cleared a 50.85 buy point in a cup-with-handle-base
Sept. 20 in strong volume. But Limited Brands didn't gain much
ground before settling into another consolidation.