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COLUMBUS, Ohio (AP) — Limited Brands Inc., which operates Victoria's Secret and Bath and Body works retail chains, said revenue from stores open at least a year rose 3 percent in October, falling short of analyst expectations.
Shares slipped more than 2 percent even after the Columbus, Ohio, company raised its guidance. It was a rare miss for the retailer.
Analysts had expected revenue to rise 4.9 percent during the four weeks ended Oct. 27, according to a poll by Thomson Reuters. The figure is a key gauge of a retailer's financial health because it excludes volatility from stores that open or close during the year.
Revenue in stores open at least one year rose 3 percent at Victoria's Secret, 5 percent at Bath and Body Works and fell 3 percent at the La Senza lingerie chain.
Total revenue during the period fell 6 percent to $611 million from $652.4 million last year.
For the third quarter, revenue in stores open at least one year rose 5 percent and total revenue fell 6 percent to $2.05 billion from $2.17 billion. Analysts expected $2.05 billion.
Limited now expects net income for the third quarter, excluding items, of 23 cents to 25 cents per share, from prior guidance of 15 cents to 20 cents per share. Analysts expect 21 cents per share.
The company operates 2,887 stores globally. Shares fell $1.20 to $46.67 during morning trading. Shares are still up 19 percent for the year.