Limited Brands jumps after raising profit target

The Columbus, Ohio, chain said late Wednesday its earnings totaled $97.8 million, or 28 cents per share, including a gain of 24 cents per share on an asset sale. Same-store sales, or sales in stores open at least a year -a key measure of retailer health -declined 8 percent.

Limited Brands, the parent of Victoria's Secret and Bath & Body Works and other brands, said it expects to earn $1.38 to $1.58 per share for the full year, excluding gains, up from a prior range of $1.35 to $1.55 per share.

Todd Slater of Lazard Capital Markets said in a note to clients Thursday better-than-expected margins helped Limited's earnings per share beat his estimate by 4 cents.

He raised his earnings forecast for the year and reiterated a "Buy" rating and $31 price target.

Neely J.N. Tamminga of Piper Jaffray raised her target to $22 from $21 and also raised her estimates.

"While one quarter does not make a trend, we are encouraged that Limited Brands bested expectations -reversing last year's pattern of consistently lowering guidance," she wrote in a note. Tamminga rates the stock "Buy."

Lauren Cooks Levitan of Cowen & Co. said solid expense and inventory controls offset weak sales and approved of management's plans to scale back store growth plans.

"Barring a major deterioration in (same-store sales) trends, we see additional upside to our Q2 EPS estimate given the company's lean inventory levels and easy expense comparisons relative to last year," the analyst wrote, adding that Limited Brands could use its cash to repurchase stock.

Shares of Limited Brands rose 54 cents, or 3 percent, to close at $18.85.