Limited Brands Inc
Net income came in at $2.6 million, or 1 cent a share, in the first quarter ended May 2, compared with $96.8 million, or 28 cents a share, a year earlier.
Analysts had expected the company to post a loss of 3 cents a share, according to Reuters Estimates.
Net sales fell 10.4 percent to $1.725 billion.
Limited shares were up 34 cents at $12 in after-hours trading, after closing at $11.66 on the New York Stock Exchange on Wednesday.
Months ago, the retailer vowed aggressive cost-cutting.
The recession has hurt Limited Brand's sales of non-essential items as shoppers try to save.
Sales at stores open for at least a year fell 7 percent in the first quarter.
Limited is based in Columbus, Ohio.
(Reporting by Dhanya Skariachan)