The Limited, Inc. (Columbus, Ohio) has announced intentions to sell Lane Bryant, the plus-size apparel retailer, and has retained Lazard Freres to represent it in this transaction. “Lane Bryant has established itself as the leading women's plus-size business,” said chairman, president and ceo Leslie Wexner. “Now is an ideal time to pursue future growth opportunities with a strategic or financial buyer.”
Limited also announced that it would integrate its Structure menswear chain into the Express brand, calling it Express Men's. Michael Weiss, Express president and ceo, will now oversee both the men's and women's businesses. Peter Whitford had resigned as president and ceo of the Structure business earlier this year.
The initiatives were announced by Wexner as a way to maximize shareholder value at a time when the company's income had dropped 3 percent for the fiscal year ending Feb. 3, 2001, (though comp-store sales increased 5 percent). Comp-store sales for the fourth quarter rose 2 percent.
The management shakeup that would accompany the shakeup of The Limited's varied retail holdings would have Ken Gilman, vice chairman and chief administrative officer of The Limited (and a 25-year veteran of the company), going over to Lane Bryant as ceo. Current Lane Bryant president Jill Dean will retain her position.
“This is a great opportunity to further grow the Express brand and reunite Structure with its original brand and leader, Michael Weiss,” Wexner said. Structure was founded in 1987 as a division of Express. It became a separate division in 1990.
In another management move, Wexner announced the promotion of Len Schlesinger to executive vp and coo. The former executive vp of organization, leadership and human resources will assume added responsibility for store operations (as well as sourcing, technology, logistics and legal). Andrea Weiss resigned earlier this year as The Limited's chief stores officer.
The Limited's stock has fallen in value more than 35 percent since November. “Except for the performance at Express, the fourth quarter of 2000 was a major disappointment,” Wexner said. “Given the U.S. economic situation, we are planning for modest profit growth in 2001, and we are expecting the first three quarters of the year to be particularly challenging.”
The Limited currently operates 2739 Express, Lerner New York, Lane Bryant, Limited, Structure and Henri Bendel stores. It also owns approximately 84 percent of Intimate Brands, Inc., which sells intimate apparel, beauty and personal care products through 2390 Victoria's Secret, Bath & Body Works and White Barn Candle Co. stores. And it retains a 40 percent stake in Galyan's Trading Co., the sporting goods retail chain. it spun off (sporting goods). With annual sales of more than $9 billion, it is the second-largest apparel retail organization in the country (behind The Gap).
Lane Bryant has been one of The Limited's most underperforming holdings (Lerner New York being the other), so the restructuring came as little surprise to Wall Street analysts.