Limited Brands Cycles Out of Apparel

Limited Brands has run out of luck in the low-margin, cyclical apparel category, but is striking it rich at its Victoria's Secret and Bath & Body Works divisions. Since 1996, Express division sales have been flat. And The Limited Stores division has piled up more than $400 million in losses since 1993. Now, pundits are speculating that Limited Stores, with only 347 locations, could sell to a strategic or financial buyer for $100 million to $280 million. Focusing on intimate apparel and personal care products would perpetuate a 10-year trend at the company.