Expensive Acquisition, Good Fit

Article Excerpt

LIMITED BRANDS INC. $31 (New York symbol LTD; Aggressive Growth Portfolio, Consumer sector; WSSF Rating: Average) has agreed to pay $628 million for La Senza Corp., which operates 318 women’s lingerie stores in Canada. Licensees operate 327 La Senza stores in 34 other countries. The company feels that its long experience running the Victoria’s Secret chain will help it expand La Senza’s profits. In the meantime, thanks to strong growth at the Victoria’s Secret and Bath & Body Works chains, Limited Brands earned to $0.06 a share (total $23.5 million) in its third fiscal quarter ended October 28, 2006. The company broke even in the year-earlier quarter. Sales rose 10.5%, to $2.1 billion from $1.9 billion, while same-store sales grew 10%. Limited Brands is a buy. buy…

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