The Limited Posts Steep Earnings Drop
Operating income totaled $77 million, compared with $157.1 million in that period last year. Adjusted net income reached $34.4 million, compared with $77.6 million a year ago. Adjusted 2001 results exclude an after-tax nonoperating gain of $37.1 million resulting from the initial public offerings of Alliance Data Systems Corp. and Galyan's Trading Co., companies in which The Limited owns a minority interest. Sales totaled $2.192 billion, compared with $2.289 billion for the quarter of 2000.
The company owns about 84 percent of Intimate Brands Inc., which also saw its second-quarter numbers plummet. Intimate Brands, which includes Victoria's Secret, posted operating income of $117.6 million, down from $170.7 million last year, as well as net income of $68.9 million compared with $99.8 million last year. Sales totaled $1.151 billion, compared with $1.191 billion during the second quarter of 2000.
In other news, Victoria's Secret Aug. 22 closed its call center in Columbus. The company's call centers in Kettering, OH, and Rio Rancho, NM, will handle calls previously taken by the Columbus center. The closing affects 470 workers, but layoffs are not planned since affected employees will have the option to transfer.