Limited Brands
Essay Preview: Limited Brands
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David Zahner
Matt Bonneau
Managerial finance
Limited Brands co.
MATT!!!!
Background and History.
The Limited opens its first store in Kingsdale Mall in Columbus, Ohio.
The Limiteds first public stock offering is issued over-the-counter. 47,600 shares are offered at $7.25 per share.
First Limited Express opens in Chicago. Two years later, Express becomes the first separate division of Limited Brands.
Victorias Secret store and catalogue are purchased for $1 million.
Express Mens brand is sold in 16 Express stores. Two years later it is renamed Structure.
25 Abercrombie & Fitch stores and one catalogue are acquired for $46 million.
Bath & Body Works opens first store in Boston.
First Structure store is opened. Two years later it becomes its own division.
Limited Too, fashion for girls, is unveiled in Limited Stores.
The Limited, Inc. completes split-off of Abercrombie & Fitch.
Victorias Secret launches e-commerce site VictoriasSecret.com, profitable since day one.
The White Barn Candle Co. is launched by raising an old-fashioned barn in New York Citys Bryant Park.
Intimate Beauty Corporation, is created to develop and build a portfolio of distinct beauty businesses. Victorias Secret Beauty is the first brand in its portfolio.
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.
The Limited, Inc. and Intimate Brands, Inc. recombine into The Limited, Inc.
The Limited, Inc. changes its name to Limited Brands to further emphasize the Companys commitment to building a family of the worlds best fashion brands.
Limited Brands named the worlds most admired specialty retailer by FORTUNE magazine in its annual compilation of outstanding companies in the world.
Increases annual dividend 20% to $0.48 per share.
Limited Brands issues a $500 million special dividend ($1.23 per share).
Limited Brands announces reorganization into three business groups: lingerie, beauty and personal care, and apparel.
Increases annual dividend 25% to $0.60 per share.
Completes the sale of the majority interest in Express.
Increases share repurchase program to $1 billion.
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: Fredericks of Hollywood , The Gap , Hanesbrands
Bath and body works
Competitors:….Body Shop , Estĩe 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, Bloomingdales
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 stocks sustainable growth rate is quite