Limited Brands to Pay Special Dividend of $3 a Share

Limited Brands (LTD), owner of retail chains including Victoria's Secret and Bath & Body Works, will pay out a special dividend of $3 a share.

The company also plans to buy back $200 million of its shares, Limited Brands said in a statement.

"We have been and remain committed to returning excess cash to shareholders through a combination of ongoing regular dividends, share repurchases and special dividends," CEO Leslie Wexner said.

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The company will pay the special dividend on Dec. 21 to shareholders of record at the close of business on Dec. 7. The $200 million share repurchase program includes $53 million remaining under a previous program.

Limited Brands reported earnings of 18 cents per share, compared with 2 cents per share a year earlier, excluding an income tax benefit.

Sales at stores open at least one year rose 10% in the third quarter from a year ago. Net sales were $1.98 billion, compared with $1.78 billion a year ago.

Limited Brands forecast fourth quarter earnings of $1.02 per share to $1.17 per share. For 2010, the company forecast earnings per share of $1.82 to $1.97, compared with a previous forecast of $1.68 to $1.83.