Limited Brands

1. Limited Brands Christie Coyle CRS 231 March 27, 2006

2. Subsidiaries • The Limited • Express- Men’s and Women’s • Victoria’s Secret • Bath & Body Works • C.O. Bigelow • The White Barn Candle Company • Henri Bendel

3. History of Limited Brands • LeslieH. Wexner opened his first clothing store in Columbus, Ohio in 1963 • Soon after, the single store turned into a chain, and by 1981, Limited Inc. was on it’s way to becoming a major name in the retail industry. • Brands such as Express and Victoria’s Secret became the most successful labels in the early 90’s • Limited Inc. changed it’s name to Limited Brands in 2002 to emphasize it’s commitment to building a family of the world’s best fashion brands. In this same year, Lerner New York/ New York & Company were sold, two companies that were originally owned by Limited Brands • In 2005, Limited Brands reorganized it’s entire company into business groups instead of separate brands, which has proved to be one of the most successful decisions the company has made. • Today, Victoria’s Secret and Bath & Body Works lead the company in annual sales, and Limited Brands’ subsidiaries continue to take the fashion industry by storm. • Limited Brands is a public company

4. Company Performance • Concerning the company performance in 2005, Victoria’s Secret made up 45% of the sales that surpassed 9,000,000,000. The apparel business accounted for 27% of the earnings, and Bath and Body Works sold 23% of the earnings. Looking at these numbers, it is easy to see that the apparel group of Limited Brands is the least successful. • Number of Locations: ~Bath & Body Works- 1,568 ~ Express- 884 ~ Victoria’s Secret- 1,001 ~ The Limited- 323 • Compared to February 2005, the net sales of Limited Brands in February 2006 have made a 4% increase

5. Brand Description ~The Limited~ • The Limited is a modern and sophisticated label for the fashion-conscious female. The Limited markets their clothing toward working-women who are looking for affordable, yet chic items to complete their wardrobe. Here is a bit of statistical information about The Limited: • Net sales (millions)~ $577 • Comparable store sales (2004)~ 5% • Numbers of stores~ 323 • Selling square feet~ 1,948,000 • Sales per average selling square foot~ $285 • Average store size (selling square feet)~ 6,031 The Limited’s latest trend: The Skinny Jean

6. ~Victoria’s Secret~ • Victoria’s Secret is by far Limited Brands’ most successful brand. It is the world leader in intimate apparel and specialty lingerie. This colossal retail power also has a very successful line of personal care products, including everything from perfume to make-up. Victoria’s Secret makes it easy for shoppers to access their merchandise by having stores, a catalogue, and online shopping. • Net sales (millions)~ $3,113 • Comparable store sales~ 9% • Numbers of stores~ 1,001 • Selling square feet~ 4,868,000 • Sales per average selling square foot~ $648 • Average store size (selling square feet)~ 4,693 The newest swimwear line from V.S. is now available

7. ~Express~ • Express is another segment of Limited Brands that is apparel based. The young, fresh, sexy label makes items for men and women that can be worn for work or casual wear. What makes Express such a leader is that their clothing is design-driven, so they specialize in quality, original pieces that are affordable and desirable. With such success in the retail industry, Express remains a fashion leader. • Net sales (millions)~ $1913 • Comparable store sales~ 8% • Numbers of stores~ 884 • Selling square feet~ 5,392,000 • Sales per average selling square foot~ $347 • Average store size (selling square feet)~ 6,100 The Design Studio Collection, Spring 2006

8. ~Bath & Body Works~ • Bath & Body Works has come a long way from it’s beginnings. It hasrefaced it’s entire image to become a more mature retailer from the country-inspired personal care merchant it was 5 years ago. The company has come out with lines of products meant to care for more than just the body, such as AquaTanica Spa treatment and their line of aromatherapy products. With further developments to their marketing strategies, Bath and Body Works will continue to grow as a retailer. • Net sales (millions)~ $2,169 • Comparable store sales (2004)~ 12% • Numbers of stores~ 1,569 • Selling square feet~ 3,556,000 • Sales per average selling square foot~ $611 • Average store size (selling square feet)~ 2,266 One of the latest lines of personal care products from B&BW, AuqaTanica

9. Outlook for Limited Brands • Limited Brands has gone through pivotal changes within their company that have helped and hurt their performance. Over the past years, personal care sales have improves, while the apparel segments’ numbers have decreased. When looking at the SWOT analysis, there is potential for a change in these trends. According to MarketLine Business Information Center, Limited Brands strengths in their identifiable brand name and a favorable variety of products. On the other hand, their weaknesses include a decrease in profits due to operation costs and increasing inventories. • Limited Brands’ largest opportunity is the global lingerie market. Now Victoria’s Secret has a catalogue and online shopping, the store can be reached world wide. With their successful marketing schemes, this will skyrocket Victoria’s Secret’s sales.

10. Award and Honors • Most Admired Company – Specialty Retailer by Fortune Magazine • Best Overall Investor Relations- Investor Relations Magazine • Best Use of Technology – Investor Relations Magazine • Gold Winner- Overall Annual Report- International Arc Awards