14. Limited Brands

Columbus, OH
www.limitedbrands.com

Beauty Sales: $2.7 billion
Corporate Sales: $9 billion

Key Personnel: Leslie H. Wexner, chairman and chief executive officer; Jane L. Ramsey, chief executive officer, Bath and Body Works; Shashi Batra, president, Victoria’s Secret Beauty. Major Brands/Products: Victoria’s Secret Beauty fragrances, skin care and cosmetics, including Secret Garden Collection and Victoria’s Secret Pink. Bath & Body Works personal care, beauty and home fragrance products marketed under the Bath & Body Works, C.O. Bigelow and The White Barn Candle Company. The company also owns upscale retailer Henri Bendel.

New Products: Naturally Victoria’s Secret Violet & Jasmine collection, Secret Garden Sexy-Bac sanitizing hand gel, Sexy Little Things Noir; Pink Body natural body care products.

Comments: Leslie H. Wexner, chairman and chief executive officer, reported that while 2008 started out well, by the last quarter, the negative impact of the economy took hold. Limited Brands did not have a good year. Corporate sales fell 11% and net income dropped nearly 70%. Sales at Bath & Body Works fell 5% to less than $2.4 billion. Estimated sales for Bath & Body Works, White Barn and Victoria’s Secret personal care and home fragrance products reached $2.7. Net income was $220 million for the year ended Jan. 31, 2009.

The company attributed the drop to the broadening recession and declines in its Signature Collection, which were offset partially by increases in the aromatherapy, True Blue Spa and home fragrance categories. With sales falling and no sign of recovery, Limited Brands initiated a restructuring program in December that included the elimination of approximately 400 positions.

Still, in 2009, the company expected to open about 20 new Bath & Body Works stores and its first Pink store in Canada. In 2010, it plans to open Victoria’s Secret Stores in Canada. At the FiFi Awards in May, Victoria’s Secret Beauty’s Sexy Little Things Noir eau de parfum won Fragrance of the Year in the Women’s Private Label Direct Sell category.

Wexner said the company’s decision to take a defensive position in 2008 enabled it to make progress. Still, first quarter revenues declined 10.4% to $1.7 billion and net income plunged 97% to about $98 million.

Mid-year 2009, the company reported a comparable store sales decrease of 9% for the 26 weeks ended August 1, 2009, compared to the 26 weeks ended August 2, 2008. The company reported net sales of $3.8 billion, compared to sales of $4.28 billion for the same period last year. Victoria’s Secret sales were down 5% and Bath & Body Works down 1% over the same period last year.

Victoria’s Secret is in the process of giving its Very Sexy makeup line a makeover. The line is being rebranded as VS Makeup and will boast new formulas, new packaging and a broader array of colors.