While it is selling the Express apparel chain, the company is also exploring a sale of its 253 Limited stores. Same-store sales at Express increased 9% year over year in April and sank 6% at Limited.
As the company reduces its interest in its mall-based apparel chains, executives plan to grow its stakes in intimate wear and beauty products. The company is expanding its Victoria's Secret and Bath & Body Works chains, which currently total more than 2,500 units.
Limited's management also reduced the company's projected earnings per share for the year to between $1.55 to $1.65 from an original $1.75 to $1.90. The decrease is related to what chief financial officer Martyn Redgrave calls disappointing sales at Victoria's Secret.
Golden Gate Capital is one of many private-equity firms making investments in retail companies. The San Francisco-based outfit has invested in catalog-apparel company and former Eddie Bauer owner Spiegel.
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