[R]8:15AM Limited Brands posted 46% earnings drop.[/R]

Limited Brands (LTD: chart) posted 46% earnings drop in Q1, due to lower-than-expected sales and margins across all its brands, particularly Victoria''s Secret. The retailer said it earned $52.9 million, or 13 cents per share, compared with profits of $99.4 million, or 25 cents a share a year ago. Sales totaled $2.3 billion compared with $2.1 billion a year ago.

The company projected Q2 profit decline and cut its full-year earnings guidance. Limited Brands said it now expects to make 20 cents to 24 cents a share in Q2, compared with 28 cents a year ago, and that earnings for the full year would be between $1.55 and $1.65 per share, compared with its initial guidance of $1.75 per share.

The company had posted a 4% increase in April same-store sales, but it expects May''s same-store sales to come below earlier estimates. Limited Brands announced last week that it would sell 67% of its interest in its underperforming Express apparel brand to affiliates of private equity firm Golden Gate Capital for $548 million by July.