Limited Brands Announces Stock Buyback/Special Dividend (LTD)

Shares of Limited Brands, Inc. LTD are spiking higher in the after-hours after the company announced better than expected earnings, followed by a stock buyback announcement and a special dividend. Shares are currently higher by 2.60%, trading at $32.70; this comes after the stock ended the regular session higher by 2.51%, at $31.87. LTD announced that its board of directors declared a special dividend of $3 per share and authorized a $200 million share repurchase program. Leslie H. Wexner, chairman and chief executive officer, stated, "The significant increase in our year-to-date earnings and the continued disciplined management of inventory, capital spending and our capital structure have resulted in a very strong cash and liquidity position. We are confident in our ability to deliver substantial growth in our business and to generate significant free cash flow. We have been and remain committed to returning excess cash to shareholders through a combination of ongoing regular dividends, share repurchases and special dividends." Limited Brands, Inc. is a specialty retailer of women's intimate and other apparel, beauty and personal care products and accessories under various trade names. The company sells its merchandise primarily through its retail stores in the United States and Canada and through its Websites and catalogues. The company operates in two segments: Victoria's Secret and Bath & Body Works.