Limited Brands beats 2Q expectations, but it's not pretty

Limited Brands Inc. (LTD) beat both its own expectations and Wall Street estimates for the second quarter and raised its guidance for the full year, despite a sharp drop in earnings. Then the parent of Victoria's Secret, Henri Bendel and Bath & Body Works warned that next quarter's results will be pretty grim.

The company reported net income of $74.3 million for the second quarter, down 27.1 percent from the same period last year. Earnings totaled 19 cents per share, which comfortably beat the analysts' estimates, but were 29.6 percent below last year's quarter.