The Limited took some drastic action yesterday to spur growth of its core women's business, including closing five of six Henri Bendel specialty stores and completely spinning off the successful Abercrombie & Fitch chain.
The move, expected, was Columbus's cleaning the stagnation, retailers try to get rid of the cobwebs, then into an expansion mode.
Meanwhile, the limited reported diluted earnings per share rise in the fourth quarter, 123 percentage points, reach 91 cents from 81 cents last year, not including cost, reflects its strength has the intimate brand operation company "the secret of Victoria" chain of shops, China a&f business.
For extra push to improve profits, limited company, said it will shut or narrow many 280 women 3800 on shop.
To make all the action, ltd., company said Bryant and lane veil shops in the fourth quarter, will take charge of $167.2 billion dollars, or 60 cents is reinvested.
The company announced earlier this year, its IBI device would 118 - store closing its leader underwear chain.
Limited shares closed 31 points, in every week high.
Most of the stock increase over the years, though, has been pegged to Limited's 84-percent stake in A&F and 83-percent ownership of IBI, both of which have been experiencing great growth.
Recently attacked limited core eye off with the female enterprise.
In closing Bendel operation, which has Henry useless in the past 12 years Co., LTD. Has it will only of its landmark nameplate fifth avenue store.
Business Co., LTD will be as a 25 - store concept store.
Store in Chicago, Columbus, Boston, Troy Abel, and Paramus will be closed, n.j., on February 28th.
"This decision was made not only of the rich work and financial situation of exploration and its fullness, Bendel all other alternatives that would let these shops continue," Leslie Wexner, chairman and chief executive, said in a statement.
Wexner put chains on the block but last year found no serious purchasers.
"We are pleased to protect the landmark Bendel geographical position, represent a valuable asset to the real estate Co., LTD Wexner attention.
The Bendel had sales of approximately $83 million and lost $28 million operation basis, not including financial 1997 of $13 million liquidation expenses related inventory.
The spin-off of the 156-store A&F chain will be accomplished through a Dutch auction, which will put 100 percent of its shares in the public's hands.
If nothing else, it will give disgruntled Limited shareholders a chance to grab a piece of the fast-growing, highly profitable A&F chain.
Expect many shareholders to go for the A&F shares.
Limited shareholders will be given the opportunity to exchange any or all of their shares for the A&F shares currently held by The Limited.
The tax-free exchange will distribute 43 million A&F shares. It is expected to take place late in the first quarter.
A ratio has not yet been set on the tax-free exchange of Limited shares for A&F shares, but Limited shareholders are expected to receive a premium on the shares they tender, the company said.
Including the charges, Limited reported profits in the fourth quarter ended Jan. 31 slipped to $85.3 million, or 31 cents, from $213 million, or 78 cents.
For fiscal 1998, profits, including charges, dropped to $217.4 million, or 79 cents, from $434 million, or $1.54 a share.
Net sales for fiscal 1997 were $9.2 billion, up 6 percent from last year. Same-store sales were flat.
The move, expected, was Columbus's cleaning the stagnation, retailers try to get rid of the cobwebs, then into an expansion mode.
Meanwhile, the limited reported diluted earnings per share rise in the fourth quarter, 123 percentage points, reach 91 cents from 81 cents last year, not including cost, reflects its strength has the intimate brand operation company "the secret of Victoria" chain of shops, China a&f business.
For extra push to improve profits, limited company, said it will shut or narrow many 280 women 3800 on shop.
To make all the action, ltd., company said Bryant and lane veil shops in the fourth quarter, will take charge of $167.2 billion dollars, or 60 cents is reinvested.
The company announced earlier this year, its IBI device would 118 - store closing its leader underwear chain.
Limited shares closed 31 points, in every week high.
Most of the stock increase over the years, though, has been pegged to Limited's 84-percent stake in A&F and 83-percent ownership of IBI, both of which have been experiencing great growth.
Recently attacked limited core eye off with the female enterprise.
In closing Bendel operation, which has Henry useless in the past 12 years Co., LTD. Has it will only of its landmark nameplate fifth avenue store.
Business Co., LTD will be as a 25 - store concept store.
Store in Chicago, Columbus, Boston, Troy Abel, and Paramus will be closed, n.j., on February 28th.
"This decision was made not only of the rich work and financial situation of exploration and its fullness, Bendel all other alternatives that would let these shops continue," Leslie Wexner, chairman and chief executive, said in a statement.
Wexner put chains on the block but last year found no serious purchasers.
"We are pleased to protect the landmark Bendel geographical position, represent a valuable asset to the real estate Co., LTD Wexner attention.
The Bendel had sales of approximately $83 million and lost $28 million operation basis, not including financial 1997 of $13 million liquidation expenses related inventory.
The spin-off of the 156-store A&F chain will be accomplished through a Dutch auction, which will put 100 percent of its shares in the public's hands.
If nothing else, it will give disgruntled Limited shareholders a chance to grab a piece of the fast-growing, highly profitable A&F chain.
Expect many shareholders to go for the A&F shares.
Limited shareholders will be given the opportunity to exchange any or all of their shares for the A&F shares currently held by The Limited.
The tax-free exchange will distribute 43 million A&F shares. It is expected to take place late in the first quarter.
A ratio has not yet been set on the tax-free exchange of Limited shares for A&F shares, but Limited shareholders are expected to receive a premium on the shares they tender, the company said.
Including the charges, Limited reported profits in the fourth quarter ended Jan. 31 slipped to $85.3 million, or 31 cents, from $213 million, or 78 cents.
For fiscal 1998, profits, including charges, dropped to $217.4 million, or 79 cents, from $434 million, or $1.54 a share.
Net sales for fiscal 1997 were $9.2 billion, up 6 percent from last year. Same-store sales were flat.
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