Limited intends to grow the chain throughout most of its retail formats, both in Canada and in other countries, said Martyn Redgrave, the company's chief financial officer, during a conference call on the deal. Limited will also keep Montreal-based La Senza's management team in place.
Locally-based Limited is funding the deal with $400 million in debt and the remainder with $240 million in cash. Management officials with both retailers say they expect the deal to close by mid-January.
For its most recent quarter, reported on Aug. 23, La Senza posted a 2.3% same-store sale increase year over year. Net earnings for the period more than tripled, reaching C$7.2 million, while total sales jumped 12.3%, to C$108.9 million.
Meanwhile, Limited announced its third-quarter results in conjunction with the La Senza announcement. Its same-store sales for the period ended Oct. 28 jumped 7% year over year, while total sales rose to just more than $6.6 billion, from last year's Q3 total of just more than $6.2 billion. Operating income soared to $66.5 million from $20.3 million. Limited operates just more than 3,500 stores under the Bath & Body Works, Express and Victoria's Secret banners, as well as other chains.
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