L Brands Inc. (LB) said that its board declared a special
dividend of $1 a share and that its regular annual dividend was
raised 13%.
The company, formerly called Limited Brands Inc., includes
mall-based retailers Victoria's Secret and Bath & Body
Works.
The annual dividend increased to $1.36 a share, from $1.20 a
share. The special dividend is estimated to cost L Brands about
$290.3 million, while the increase in the annual payout to
shareholders is estimated to cost the company an additional $46.4
million a year.
Though retailers have broadly been stung by weak mall traffic
and high promotions, some observers say L Brands has maintained
growth by winning over customers with new products.
L Brands' fiscal third-quarter profit rose 25%, as the retailer
continued to post higher sales. The company last month lowered its
fiscal fourth-quarter earnings guidance.
Write to Tess Stynes at tess.stynes@wsj.com
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