Limited Brands presents roadmap
This article was originally published in The Rose Sheet
Executive Summary
Firm will refocus on personal care and intimate apparel as part of an initiative to reduce costs, return value to shareholders and home in on key growth areas, according to a June 22 release. Limited Brands previously announced that it will sell a 67% interest in its Express clothing brand to Golden Gate Capital; that deal will close July 6. Limited is "exploring strategic alternatives" for its Limited Brand clothing stores, the company says. Beginning in FY 2008, the firm will reduce SG&A expenses by about $100 mil. annually by trimming corporate and brand staff by about 10%. Firm also will double its $500 mil. share repurchase effort; thus far, the company has repurchased $190.5 in shares. To fund its repurchasing program as well as the acquisition of La Senza and other "corporate requirements," the company says it will raise $1.25 bil. in debt...