Case Study : The Limited Inc
Limited Brands Overview
Founded in 1963 by Leslie H. Wexner, Limited Brands, Inc. is a specialty retail business in the U.S.
Headquartered in Columbus, Ohio
Sells women's intimate apparel, personal care and beauty products, and women's and men's apparel
Victoria's Secret (women's intimate and other apparel, beauty products, and accessories through retail stores, catalogue, and e-commerce)
Bath & Body Works (personal, care, beauty, and home fragrance products)
Express stores, which offer women's and men's apparel, sportswear, and accessories
Limited stores, a mall-based specialty store retailer of sportswear for women
Key facts (1990)
Industry: Apparel Stores
Full Time Employees: 18,000 (1989)
3,911 Stores (1990)
Net sales 1991 $8.934M
Operating income $963M
1963 The Limited opens its first store in Kingsdale Mall in Columbus, Ohio
1969 The Limited's first public stock offering is issued over-the-counter. 47,600 shares are offered at $7.25 per share
1982 Victoria's Secret store and catalogue are purchased for $1 million.
1985 One Henri Bendel store is acquired for $10M
1988 25 Abercrombie & Fitch stores and one catalogue are acquired for $46 million
1990 Bath & Body Works opens first store in Boston.
Goals & Objectives
Aggressively sort our portfolio and financially restructure our business through spins, splits, sell-offs, and store closings
With obtained cash from above actions, continue building our brand recognition
Our principle goal - increase shareholders value through a family of the world's best fashion brands
Build a "family of the world's best fashion brands" (Book, 2004)
To build a Company of powerful and differentiated retail brands that maintain and strengthen our position
What are the four company values?
Doing What is Right
for associates, customers and investors
in our thoughts and behaviors
Working for the Greater Good
of the enterprise and the communities in which we operate
in all we do
External Opportunities and Threats
Current 31M of people ages 12-19 is expected to increase to a record 34M by 2010
Teens ages 12-19 spent approx. $200B in 2002 with 1/3 of this spending in fashion
Female baby boomers needs are not fully satisfied by retailers and manufacturers of women's apparel
General e-commerce sales were up 25% in...