Limited Brands

David Zahner

Matt Bonneau

Managerial finance

Limited Brands co.

MATT!!!!

Background and History.

1963 The Limited opens its first store in Kingsdale Mall in Columbus, Ohio.

1969 The Limited's first public stock offering is issued over-the-counter. 47,600 shares are offered at $7.25 per share.

1980 First Limited Express opens in Chicago. Two years later, Express becomes the first separate division of Limited Brands.

1982 Victoria's Secret store and catalogue are purchased for $1 million.

1987 Express Men's brand is sold in 16 Express stores. Two years later it is renamed Structure.

1988 25 Abercrombie & Fitch stores and one catalogue are acquired for $46 million.

1990 Bath & Body Works opens first store in Boston.

1990 First Structure store is opened. Two years later it becomes its own division.

1988 Limited Too, fashion for girls, is unveiled in Limited Stores.

1998 The Limited, Inc. completes split-off of Abercrombie & Fitch.

1998 Victoria's Secret launches e-commerce site VictoriasSecret.com, profitable since day one.

1999 The White Barn Candle Co. is launched by raising an old-fashioned barn in New York City's Bryant Park.

1998 Intimate Beauty Corporation, is created to develop and build a portfolio of distinct beauty businesses. Victoria's Secret Beauty is the first brand in its portfolio.

2000 Intimate Beauty Corporation and Shiseido Co., Ltd. form joint venture to develop, market and sell new lines of prestige beauty products for sale in free-standing stores.

2002 The Limited, Inc. and Intimate Brands, Inc. recombine into The Limited, Inc.

2002 The Limited, Inc. changes its name to Limited Brands to further emphasize the Company's commitment to building a family of the world's best fashion brands.

2003 Limited Brands named the world's most admired specialty retailer by FORTUNE magazine in its annual compilation of outstanding companies in the world.

2004 Increases annual dividend 20% to $0.48 per share.

2004 Limited Brands issues a $500 million special dividend ($1.23 per share).

2005 Limited Brands announces reorganization into three business groups: lingerie, beauty and personal care, and apparel.

2005 Increases annual dividend 25% to $0.60 per share.

2007 Completes the sale of the majority interest in Express.

2007 Increases share repurchase program to $1 billion.

200

7 Acquires La Senza Corporation, a leading Canadian and international intimate apparel retailer based in Canada.

DAVE

Information about the industry… talk about each devision…

Victorias secret

• Competitors: Frederick's of Hollywood , The Gap , Hanesbrands

Bath and body works

Competitors:….Body Shop , EstÐ"©e Lauder , Sephora USA

White barn candle co.

competitors: yankee candle, midnight candle,

La senza:

Competitors : fredricks, movie star, delias”

Henri Bendel:

Comp.Bergdorf Goodman, Bonwit Teller, Bloomingdale's

c.o bigelow. there is no competition. They are a one of a kind inmoprt dealer of personal care products and other fine colognes and make up.

MATTT!!!!!!

Financial health

Quick ratio: 1.2 … industry average. 1.06… ( more available assets than liabilities)

Current ratio.. 2.21 averages. 2.35

Inventory turn over ratio. 4.78 ave. 3.69.. ( might take longer but has higher quality than “ hanes”)

Return on total assets.. 11.35 ave… 10.54

Price- earnings ratio… 11.82 average.. 18.18… ( no bueno)

Dividend yield. 2.62. average… ( 1.51. ) we are paying our investors more.

Stock valuation and risk.

stock growth::

We have noticed that the stock's sustainable growth rate is quite