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Previous: RESIDENTIAL FUNDING MORTGAGE SECURITIES II INC, 8-K, 2000-02-17 |
Next: INTIMATE BRANDS INC, 10-K405/A, 2000-02-17 |
<PAGE> 1
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-----------------
FORM 8-K
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
February 16, 2000
Date of Report (Date of earliest event reported)
INTIMATE BRANDS, INC.
(Exact name of registrant as specified in its charter)
--------------------
Delaware 1-13814 31-1436998
(State or other (Commission (IRS Employer
jurisdiction File no.) Identification No.)
of incorporation)
Three Limited Parkway
P.O. Box 16000
Columbus, OH 43216
(614) 479-6900
(Address of principal executive offices)
- -------------------------------------------------------------------------------
<PAGE> 2
Item 5. Other Events.
On February 16, 2000, Intimate Brands, Inc. (the "Company") issued a
press release announcing its earnings for the fourth quarter and fiscal year
ended January 29, 2000. The press release also discusses a change in accounting
related to gift certificates, store credits and layaway sales. The Company,
which has not been contacted by the Securities and Exchange Commission ("SEC"),
chose to address this matter after the issuance of SEC Staff Accounting Bulletin
No. 101, "Revenue Recognition in Financial Statements."
The press release is attached hereto as Exhibit 99 and is incorporated
in its entirety herein by reference. See "Index to Exhibits."
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
The Index to Exhibits is incorporated herein by reference
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
INTIMATE BRANDS, INC.
By: /s/ Philip E. Mallott
------------------------------
Philip E. Mallott
Chief Financial Officer*
Dated: February 16, 2000
- ---------------------------------
* Mr. Mallott is the principal financial officer and has been duly authorized to
sign on behalf of the Registrant.
<PAGE> 3
INDEX TO EXHIBITS
Exhibit
Number Description
- ------ -----------
99. Press Release issued by Intimate Brands, Inc. on February 16, 2000
99.1 EPS Impact of Accounting Change
99.2 Operating Income and S,G&A Impact of Accounting Change
99.3 Restatement Adjustment by Business
99.4 Bath and Body Works SG&A Reclassification to Buying and Occupancy
99.5 Consolidated Statements of Income for the Thirteen Weeks Ended January
29, 2000 and January 30, 1999
99.6 Consolidated Statements of Income for the Fifty-two Weeks Ended January
29, 2000 and January 30, 1999
99.7 Fourth Quarter Report
99.8 Consolidated Condensed Balance Sheets as of January 29, 2000 and
January 30, 1999
99.9 Consolidated Statement of Cash Flows for the Fifty-two Weeks Ended
January 29, 2000 and January 30, 1999
99.10 Quarterly Financial Information
99.11 Number of Stores
99.12 Store/Selling Sq. Ft. Summary External Reporting
<PAGE> 1
EXHIBIT 99
----------
INTIMATE BRANDS REPORTS 1999
EARNINGS PER SHARE INCREASE OF 21%
Columbus, Ohio; February 16, 2000 - Intimate Brands, Inc. (NYSE:IBI), the parent
company of Victoria's Secret and Bath & Body Works, today announced 1999 diluted
earnings per share for the fifty-two weeks ended January 29, 2000 of $1.84,
compared to $1.51 last year, an increase of 22%. These amounts are before
reductions to earnings per share of $0.03 in 1999 and $0.02 in 1998 for the
impact of a change in accounting for gift certificates, store credits and
layaway sales, discussed below. Including the impact of the change in
accounting, diluted earnings per share of $1.81 increased 21% year-over-year. In
1999, sales of $4.511 billion were up 16.1% over 1998, while operating income
was $793.5 million, an increase of 18% after restatement for the accounting
change. Both comparable store sales and selling square feet increased 12%, while
Victoria's Secret Catalogue sales grew 5%.
Leslie H. Wexner, Chairman and Chief Executive Officer, said, "We are pleased to
report earnings in excess of initial expectations for both the year and the
quarter. We have reported annual earnings increases of at least 20% every year
since going public in October 1995."
Before the accounting change, fourth quarter diluted earnings per share were
$1.17 versus $0.93 a year ago, a 26% increase. After the accounting change,
fourth quarter diluted earnings per share were $1.10 versus $0.88 a year ago, a
25% increase. Fourth quarter 1999 sales increased 17.7% to $1.802 billion,
driven by a 12% change in selling square feet, an 11% comparable store sales
increase and a catalogue sales increase of 12%. Fourth quarter operating income
increased 20% to $470.8 million after restatement for the accounting change.
Victoria's Secret grew to almost a $3 billion brand in 1999. The Victoria's
Secret team continued to build strong brand equity through innovative product
introductions, expanding new business opportunities such as Victoria's Secret
Beauty and building its global presence through the catalogue and
www.VictoriasSecret.com.
Victoria's Secret Stores sales increased 17% to $2.138 billion for the year,
while operating profits grew 20%. Sales at Victoria's Secret Catalogue were up
5%, with operating profit up 10%. Sales from www.VictoriasSecret.com grew
strongly throughout the year.
Bath & Body Works delivered a 22% increase in sales for the year, and operating
profits grew 24%. This was driven by continued new product offerings and
well-executed store operations. The White Barn Candle Co., launched in the Fall
of 1999, exceeded an aggressive plan.
Mr. Wexner added, "We've completed a year of exceptional growth and have
embarked on what should be another. We remain intent on delivering consistent,
superior earnings growth to our investors. We will continue to focus on
maintaining and building brand dominance; maximizing our channels of
distribution: stores, catalogue and e-commerce; and capitalizing on new business
opportunities such as Victoria's Secret Beauty and White Barn Candle Co."
CHANGE IN ACCOUNTING FOR GIFT CERTIFICATES, STORE CREDITS AND LAYAWAY SALES
Intimate Brands also announced a change in accounting for gift certificates,
store credits and layaway sales. The Company, which has not been contacted by
the Securities and Exchange Commission (SEC), chose to address this matter after
the issuance of SEC Staff Accounting Bulletin No. 101, Revenue Recognition in
Financial Statements.
This change in accounting impacts the timing of recognizing income from gift
certificates, store credits and layaway sales, but does not impact the Company's
reported cash flows, net sales or comparable store sales. Additionally, there is
no impact to customers holding unredeemed gift certificates or store credits,
nor to customers who currently have merchandise on layaway.
The Company had historically recognized net receipts/(redemptions) from gift
certificates and store credits as a reduction/(increase) to general,
administrative and store operating expenses. Layaway sales were recognized
upon receipt of the initial payment. The Company now defers the recognition
of income on these transactions until the merchandise is delivered to the
customer.
The Company will give retroactive effect to this accounting change by restating
its previously issued financial statements as of January 30, 1999 and January
31, 1998, and for each of the three fiscal years in the period ended January 30,
1999. An amended 1998 Form 10-K containing these financial statements will be
filed as soon as practicable. The change in accounting reduced reported earnings
per share for each of the fiscal years 1997 through 1999 by $0.02-$0.03 per
share per year.
Intimate Brands, Inc. is the leading specialty retailer of intimate apparel,
beauty and personal care products through the Victoria's Secret and Bath & Body
Works brands. As of January 29, 2000, Victoria's Secret products are available
through 896 lingerie and beauty stores, the Victoria's Secret Catalogue and
online at www.VictoriasSecret.com. The Company offers a broad selection of
personal care, home fragrance and decor products through 1,214 Bath & Body Works
and White Barn Candle Co. stores. The White Barn Candle Co. was launched in 1999
as the newest brand in the Intimate Brands portfolio.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995: The forward-looking statements made by the Company in this press release
involve material risks and uncertainties and are subject to change based on
various important factors which may be beyond the Company's control.
Accordingly, the Company's future performance and financial results may differ
materially from those expressed or implied in any such forward-looking
statements. Such factors include, but are not limited to, those described in the
Company's filings with the Securities and Exchange Commission. The Company does
not intend to publicly update or revise its forward-looking statements even if
experience or future changes make it clear that any projected results expressed
or implied therein will not be realized.
###
For further information, please contact:
Debbie J. Mitchell
Intimate Brands, Inc.
(614) 415-7546
The 4th quarter earnings call will be Webcast live at www.IntimateBrands.com.
To listen to the live call at 4:30 EST, please dial 1-800-553-2239 and ask for
the Intimate Brands 4Q Earnings call. A replay of the call can be accessed by
calling 1-800-696-1585 ID #424 (IBI).
<PAGE> 1
Exhibit 99.1
------------
INTIMATE BRANDS, INC.
ACCOUNTING CHANGE
IMPACT ON EPS
Our change in accounting for gift certificates, store credits and layaway sales
results in the following impacts on EPS:
- - A quarterly EPS re-calendarization, which shifts earnings from the fourth
quarter to the first and second quarters.
- - An EPS reduction of $.02 in 1997, $.02 in 1998 and $.03 in 1999
This change had minimal impact on annual and quarterly growth rates.
<TABLE>
<CAPTION>
PRE RESTATEMENT RESTATED
------------------------------------- ----------------------------------
NET INCOME DILUTED EPS NET INCOME DILUTED EPS
($ MILLIONS) EPS % GRTH ($ MILLIONS) EPS % GRTH
------------ ---- ------ ------------ ---- ------
1999
<S> <C> <C> <C> <C> <C> <C>
1Q $ 46.4 0.18 20% $ 52.7 0.21 17%
2Q $ 85.8 0.34 21% $ 88.9 0.35 25%
3Q $ 37.9 0.15 0% $ 38.4 0.15 0%
4Q $ 296.0 1.17 26% $ 278.9 1.10 25%
YEAR $ 466.1 1.84 22% $ 458.9 1.81 21%
1998
1Q $ 41.0 0.15 25% $ 46.8 0.18 29%
2Q $ 73.6 0.28 22% $ 75.9 0.28 17%
3Q $ 39.7 0.15 15% $ 39.5 0.15 15%
4Q $ 245.9 0.93 24% $ 232.0 0.88 24%
YEAR $ 400.2 1.51 22% $ 394.2 1.49 22%*
1997
1Q $ 32.9 0.12 $ 37.3 0.14
2Q $ 61.0 0.23 $ 62.8 0.24
3Q $ 35.4 0.13 $ 34.4 0.13
4Q $ 200.2 0.75 * $ 189.9 0.71 *
YEAR $ 329.5 1.24 * $ 324.4 1.22 *
</TABLE>
* Excludes a special and nonrecurring charge of $67.6 million in 1997 for the
closing of Cacique.
2/15/00
<PAGE> 1
EXHIBIT 99.2
------------
INTIMATE BRANDS, INC.
ACCOUNTING CHANGE
IMPACT ON OPERATING INCOME AND S,G&A ($ MILLIONS)
<TABLE>
<CAPTION>
BEFORE RESTATEMENT SG&A ADJUSTMENT RESTATED
----------------------------------- ------------------------------------ -------------------------------------
RETAIL OPERATING INCOME RETAIL RETAIL OPERATING INCOME
----------------------------------- ------------------------------------ -------------------------------------
1999 1998 1997 1999 1998 1997 1999 1998 1997
----------------------------------- ------------------------------------ -------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1Q 89.1 71.6 60.8 9.8 8.3 6.4 98.9 79.9 67.2
%OF SALES 13.0% 12.5% 12.0% 1.4% 1.5% 1.3% 14.5% 14.0% 13.3%
2Q 150.9 128.6 107.2 2.1 3.8 2.6 153.0 132.4 109.8
%OF SALES 19.0% 19.1% 17.6% 0.3% 0.6% 0.4% 19.3% 19.7% 18.1%
3Q 90.7 80.5 67.1 - 1.2 0.4 90.7 81.7 67.5
%OF SALES 13.1% 13.9% 12.8% 0.0% 0.2% 0.1% 13.1% 14.1% 12.9%
4Q 509.5 420.9 360.0 (26.5) (17.4) (13.3) 483.0 403.5 346.7
%OF SALES 33.0% 32.3% 31.3% -1.7% -1.3% -1.2% 31.3% 31.0% 30.1%
YEAR 840.1 701.6 595.1 (14.6) (4.1) (3.9) 825.5 697.5 591.2
%OF SALES 22.6% 22.4% 21.3% -0.4% -0.1% -0.1% 22.2% 22.3% 21.2%
VSC OPERATING INCOME VSC VSC OPERATING INCOME
----------------------------------- ------------------------------------ -------------------------------------
1999 1998 1997 1999 1998 1997 1999 1998 1997
----------------------------------- ------------------------------------ -------------------------------------
1Q 16.4 18.9 17.6 0.7 1.3 0.9 17.1 20.2 18.5
%OF SALES 8.5% 9.5% 9.8% 0.4% 0.7% 0.5% 8.8% 10.2% 10.3%
2Q 24.3 22.3 28.2 3.0 0.1 0.4 27.3 22.4 28.6
%OF SALES 10.8% 11.0% 14.4% 1.3% 0.0% 0.2% 12.1% 11.1% 14.6%
3Q (0.6) 5.8 9.4 0.9 (1.6) (2.0) 0.3 4.2 7.4
%OF SALES -0.5% 4.5% 6.6% 0.7% -1.2% -1.4% 0.2% 3.2% 5.2%
4Q 29.1 24.0 21.5 (2.2) (5.7) (4.5) 26.9 18.3 17.0
%OF SALES 11.3% 10.5% 10.0% -0.9% -2.5% -2.1% 10.5% 8.0% 7.9%
YEAR 69.2 71.0 76.7 2.4 (5.9) (5.2) 71.6 65.1 71.5
%OF SALES 8.7% 9.4% 10.4% 0.3% -0.8% -0.7% 9.0% 8.6% 9.7%
IBI OPERATING INCOME IBI IBI OPERATING INCOME
----------------------------------- ------------------------------------ -------------------------------------
1999 1998 1997 1999 1998 1997 1999 1998 1997
----------------------------------- ------------------------------------ -------------------------------------
1Q 84.2 71.4 60.3 10.5 9.6 7.3 94.7 81.0 67.6
%OF SALES 9.6% 9.3% 8.6% 1.2% 1.2% 1.0% 10.8% 10.5% 9.6%
2Q 150.8 124.9 107.5 5.1 3.9 3.0 155.9 128.8 110.5
%OF SALES 14.8% 14.3% 13.0% 0.5% 0.4% 0.4% 15.3% 14.7% 13.4%
3Q 71.2 70.6 65.7 0.9 (0.4) (1.6) 72.1 70.2 64.1
%OF SALES 8.7% 10.0% 9.5% 0.1% -0.1% -0.2% 8.9% 9.9% 9.3%
4Q 499.5 413.9 338.8 (28.7) (23.1) (17.8) 470.8 390.8 321.0*
%OF SALES 27.7% 27.0% 24.2% -1.6% -1.5% -1.3% 26.1% 25.5% 23.0%*
YEAR 805.7 680.8 572.3 (12.2) (10.0) (9.1) 793.5 670.8 563.2*
%OF SALES 17.9% 17.5% 15.8% -0.3% -0.3% -0.3% 17.6% 17.3% 15.6%
</TABLE>
* Excludes a special and nonrecurring charge of $67.6 million in 1997 for the
closing of Cacique
<PAGE> 1
EXHIBIT 99.3
------------
<TABLE>
<CAPTION>
INTIMATE BRANDS, INC.
ACCOUNTING CHANGE
RESTATEMENT ADJUSTMENT BY BUSINESS ($ MILLIONS)
TOTAL VSS
---------------------------------------------------
1999 1998 1997
---------------------------------------------------
<S> <C> <C> <C>
1Q 6.8 6.6 5.5
%OF SALES 1.6% 1.8% 1.7%
2Q 1.5 3.6 2.3
%OF SALES 0.3% 0.9% 0.6%
3Q 0.4 1.3 0.7
%OF SALES 0.1% 0.4% 0.2%
4Q (18.0) (13.5) (10.6)
%OF SALES -2.2% -1.9% -1.6%
YEAR (9.3) (2.0) (2.1)
%OF SALES -0.4% -0.1% -0.1%
<CAPTION>
BBW
---------------------------------------------------
1999 1998 1997
---------------------------------------------------
<S> <C> <C> <C>
1Q 3.0 1.7 0.9
%OF SALES 1.2% 0.8% 0.5%
2Q 0.6 0.2 0.3
%OF SALES 0.2% 0.1% 0.1%
3Q (0.4) (0.1) (0.3)
%OF SALES -0.2% 0.0% -0.2%
4Q (8.5) (3.9) (2.7)
%OF SALES -1.2% -0.7% -0.6%
YEAR (5.3) (2.1) (1.8)
%OF SALES -0.3% -0.2% -0.2%
<CAPTION>
RETAIL
---------------------------------------------------
1999 1998 1997
---------------------------------------------------
<S> <C> <C> <C>
1Q 9.8 8.3 6.4
%OF SALES 1.4% 1.5% 1.3%
2Q 2.1 3.8 2.6
%OF SALES 0.3% 0.6% 0.4%
3Q -- 1.2 0.4
%OF SALES 0.0% 0.2% 0.1%
4Q (26.5) (17.4) (13.3)
%OF SALES -1.7% -1.3% -1.2%
YEAR (14.6) (4.1) (3.9)
%OF SALES -0.4% -0.1% -0.1%
</TABLE>
<PAGE> 1
EXHIBIT 99.4
------------
INTIMATE BRANDS, INC.
SG&A RECLASS TO B&O ($ MILLIONS)
o Bath and Body Works (BBW) distribution center expenses have been moved
from SG&A to Buying & Occupancy (B&O).
o B&O is deducted to arrive at Gross Margin.
o The change results in a decrease in both our SG&A and Gross Margin rates.
o This change has no operating income impact.
<TABLE>
<CAPTION>
BBW B&O RECLASS FROM SG&A ($ Millions)
--------------------------------------
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
1Q $ 6.8 $ 5.0 $ 4.6
%OF BBW SALES 2.6% 2.4% 2.6%
2Q $ 6.1 $ 5.1 $ 4.3
%OF BBW SALES 2.0% 2.0% 2.0%
3Q $ 7.4 $ 7.6 $ 5.9
%OF BBW SALES 2.8% 3.5% 3.2%
4Q $ 8.3 $ 9.0 $ 7.7
%OF BBW SALES 1.1% 1.5% 1.6%
YEAR $28.6 $26.7 $22.5
%OF BBW SALES 1.8% 2.1% 2.1%
</TABLE>
<PAGE> 1
EXHIBIT 99.5
------------
INTIMATE BRANDS, INC.
CONSOLIDATED STATEMENTS OF INCOME
THIRTEEN WEEKS ENDED JANUARY 29, 2000 AND JANUARY 30, 1999
(IN THOUSANDS EXCEPT PER SHARE DATA)
(UNAUDITED)
<TABLE>
<CAPTION>
1999 1998
Before 1999 Before 1998
Restatement Adjustment Restated % of Sales Restatement Adjustment Restated % of Sales
-------------- ------------ ------------- ----------- -------------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Sales $ 1,801,748 $1,801,748 $1,531,192 $1,531,192
Gross Income 827,934 8,284 819,650 45.5% 712,438 8,996 703,442 45.9%
Gen'l, Admin. & Oper.
Exp. (328,408) 20,416 (348,824) -19.4% (298,542) 14,104 (312,646) -20.4%
-------------- ------------ ------------- ----------- ------------ ------------ ----------- -----------
Operating Income 499,526 28,700 470,826 26.1% 413,896 23,100 390,796 25.5%
Interest Expense (7,344) - (7,344) -0.4% (7,563) - (7,563) -0.5%
Other Income, Net 1,370 - 1,370 0.1% 3,750 - 3,750 0.2%
-------------- ------------ ------------- ----------- ------------ ------------ ----------- -----------
Income Before Income
Taxes 493,552 28,700 464,852 25.8% 410,083 23,100 386,983 25.3%
Income Taxes 197,600 11,600 186,000 10.3% 164,200 9,200 155,000 10.1%
Effective Rate 40.0% 40.0% 40.0% 40.1%
-------------- ------------ ------------- ----------- ------------ ------------ ----------- -----------
Net Income $295,952 $17,100 $278,852 15.5% $245,883 $13,900 $231,983 15.2%
============== ============ ============= =========== ============ ============ =========== ===========
Diluted Earnings per
Share* $1.17 $0.07 $1.10 $0.93 $0.05 $0.88
============== ============ ============= ============ ============ ===========
Dividends Per Share* $0.14 $0.14 $0.13 $0.13
============== ============= ============ ===========
Weighted Average
Diluted Shares* 252,568 252,568 263,511 263,511
============== ============= ============ ===========
* Adjusted to reflect 5% stock dividend declared June 22, 1999 as if it occurred at the beginning of 1998
</TABLE>
For Further Information Contact: Debbie Mitchell (614) 415-7546
<PAGE> 1
EXHIBIT 99.6
------------
INTIMATE BRANDS, INC.
CONSOLIDATED STATEMENTS OF INCOME
FIFTY-TWO WEEKS ENDED JANUARY 29, 2000 AND JANUARY 30, 1999
(IN THOUSANDS EXCEPT PER SHARE DATA)
(UNAUDITED)
<TABLE>
<CAPTION>
1999 1998
Before 1999 Before 1998
Restatement Adjustment Restated % of Sales Restatement Adjustment Restated % of Sales
-------------- ------------ --------------- ----------- ------------- ------------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Sales $ 4,510,836 $4,510,836 $3,885,753 $3,885,753
Gross Income 1,884,339 28,554 1,855,785 41.1% 1,595,397 26,706 1,568,691 40.4%
Gen'l, Admin. & Oper.
Exp. (1,078,623) (16,354) (1,062,269) -23.5% (914,548) (16,706) (897,842) -23.1%
-------------- ------------ --------------- ----------- ------------- ------------ ------------- ----------
Operating Income 805,716 12,200 793,516 17.6% 680,849 10,000 670,849 17.3%
Interest Expense (32,017) - (32,017) -0.7% (30,050) - (30,050) -0.8%
Other Income, net 3,405 - 3,405 0.1% 16,400 - 16,400 0.4%
-------------- ------------ --------------- ----------- ------------- ------------ ------------- ----------
Income Before Taxes 777,104 12,200 764,904 17.0% 667,199 10,000 657,199 16.9%
Income Taxes 311,000 5,000 306,000 6.8% 267,000 4,000 263,000 6.8%
Effective Rate 40.0% 40.0% 40.0% 40.0%
-------------- ------------ --------------- ----------- ------------- ------------ ------------- ----------
Net Income $466,104 $7,200 $458,904 10.2% $400,199 $6,000 $394,199 10.1%
============== ============ =============== =========== ============= ============ ============= ==========
Diluted Earnings Per
Share* $1.84 $0.03 $1.81 $1.51 $0.02 $1.49
============== ============ =============== ============= ============ =============
Dividends Per Share* $0.55 $0.55 $0.53 $0.53
============== =============== ============= =============
Weighted Average
Diluted Shares* 253,858 253,858 265,060 265,060
============== =============== ============= =============
* Adjusted to reflect 5% stock dividend declared June 22, 1999 as if it occurred at the beginning of 1998
</TABLE>
For Further Information Contact: Debbie Mitchell (614) 415-7546
<PAGE> 1
EXHIBIT 99.7
------------
INTIMATE BRANDS, INC.
FOURTH QUARTER REPORT
JANUARY 29, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
THIRTEEN WEEKS ENDED Percent
JANUARY 29, 2000 JANUARY 30, 1999 Increase
---------------- ---------------- --------
(in thousands except per share data)
<S> <C> <C> <C>
Net Sales $1,801,748 $1,531,192 17.7%
Operating Income $470,826 $390,796 20.5%
Net Income $278,852 $231,983 20.2%
Diluted Earnings Per Share * $1.10 $0.88 25.0%
Weighted Average Diluted Shares * 252,568 263,511
</TABLE>
<TABLE>
<CAPTION>
FIFTY-TWO WEEKS ENDED Percent
JANUARY 29, 2000 JANUARY 30, 1999 Increase
---------------- ---------------- --------
(in thousands except per share data)
<S> <C> <C> <C>
Net Sales $4,510,836 $3,885,753 16.1%
Operating Income $793,516 $670,849 18.3%
Net Income $458,904 $394,199 16.4%
Diluted Earnings Per Share * $1.81 $1.49 21.5%
Weighted Average Diluted Shares * 253,858 265,060
* Adjusted to reflect 5% stock dividend declared June 22, 1999 as if it occurred at the beginning of 1998
</TABLE>
For Further Information Contact: Debbie Mitchell
(614) 415-7546
<PAGE> 1
EXHIBIT 99.8
------------
<TABLE>
<CAPTION>
INTIMATE BRANDS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(IN THOUSANDS)
January 29, 2000 January 30, 1999
---------------- ----------------
ASSETS (Unaudited) (Unaudited)
Current Assets
<S> <C> <C>
Cash and Equivalents $ 76,373 $ 387,774
Accounts Receivable 18,135 15,627
Inventories 583,469 479,896
Other 93,935 82,639
---------- ----------
Total Current Assets 771,912 965,936
Property and Equipment, Net 449,043 398,469
Other Assets 124,036 83,672
---------- ----------
TOTAL ASSETS $1,344,991 $1,448,077
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable $ 102,446 $ 93,764
Current Portion of Long-Term Debt 150,000 100,000
Accrued Expenses 276,877 258,821
Intercompany Payable 23,741 5,860
Income Taxes 128,845 114,623
---------- ----------
Total Current Liabilities 681,909 573,068
Long-Term Debt 100,000 250,000
Deferred Income Taxes 816 2,251
Other Long-Term Liabilities 17,535 14,015
Total Shareholders' Equity 544,731 608,743
---------- ----------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $1,344,991 $1,448,077
========== ==========
</TABLE>
For Further Information Contact: Debbie Mitchell (614) 415-7546
<PAGE> 1
EXHIBIT 99.9
------------
INTIMATE BRANDS, INC.
Statement of Cash Flows
For the Fifty-two Weeks Ended January 29, 2000 and January 30, 1999
(in thousands)
(UNAUDITED)
<TABLE>
<CAPTION>
1999 1998
----- ----
<S> <C> <C>
OPERATING ACTIVITIES
Net Income $ 458,904 $ 394,199
Impact of Other Operating Activities on Cash Flows:
Depreciation and Amortization 104,625 101,221
Changes in Assets and Liabilities:
Accounts Receivable (2,508) 19,012
Inventories (103,573) (62,193)
Accounts Payable and Accrued Expenses 26,738 (5,753)
Income Taxes 12,787 30,348
Other Assets and Liabilities 2,167 32,837
--------------- ------------
NET CASH PROVIDED BY OPERATING ACTIVITIES 499,140 509,671
--------------- ------------
NET CASH USED FOR INVESTING ACTIVITIES (205,506) (121,543)
--------------- ------------
FINANCING ACTIVITIES
Change in Intercompany Balance 17,881 18,317
Repayment of 8 7/8% notes (100,000) -
Dividends Paid (136,501) (140,338)
Repurchase of Common Stock (404,410) (201,606)
Stock Options and Other 17,995 14,553
--------------- ------------
NET CASH USED FOR FINANCING ACTIVITIES (605,035) (309,074)
--------------- ------------
NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS (311,401) 79,054
Cash and Equivalents, Beginning of Year 387,774 308,720
--------------- ------------
CASH AND EQUIVALENTS, END OF PERIOD $ 76,373 $ 387,774
=============== ============
</TABLE>
<PAGE> 1
INTIMATE BRANDS, INC. EXHIBIT 99.10
QUARTERLY FINANCIAL INFORMATION -------------
RESTATED
<TABLE>
<CAPTION>
PERIOD 1998 1999
1. SALES (% INCREASE) (% INCREASE)
<S> <C> <C> <C> <C>
1st Qtr 770,868 9.5% 877,821 13.9%
2nd Qtr 874,708 5.8% 1,017,109 16.3%
3rd Qtr 708,985 2.8% 814,158 14.8%
4th Qtr 1,531,192 9.6% 1,801,748 17.7%
Year 3,885,753 7.4% 4,510,836 16.1%
6 Mos 1,645,576 7.5% 1,894,930 15.2%
9 Mos 2,354,561 6.0% 2,709,088 15.1%
2. COST OF GOODS SOLD, BUY & OCC. (% OF SALES) (% OF SALES)
1st Qtr 504,011 65.4% 551,229 62.8%
2nd Qtr 543,694 62.2% 623,244 61.3%
3rd Qtr 441,607 62.3% 498,480 61.2%
4th Qtr 827,750 54.1% 982,098 54.5%
Year 2,317,062 59.6% 2,655,051 58.9%
6 Mos 1,047,705 63.7% 1,174,473 62.0%
9 Mos 1,489,312 63.3% 1,672,953 61.8%
3. GROSS MARGIN (% OF SALES) (% OF SALES)
1st Qtr 266,857 34.6% 326,592 37.2%
2nd Qtr 331,014 37.8% 393,865 38.7%
3rd Qtr 267,378 37.7% 315,678 38.8%
4th Qtr 703,442 45.9% 819,650 45.5%
Year 1,568,691 40.4% 1,855,785 41.1%
6 Mos 597,871 36.3% 720,457 38.0%
9 Mos 865,249 36.7% 1,036,135 38.2%
4. GENERAL ADMIN. & STORE OPERATING EXPENSE (% OF SALES) (% OF SALES)
1st Qtr 185,839 24.1% 231,898 26.4%
2nd Qtr 202,197 23.1% 237,927 23.4%
3rd Qtr 197,160 27.8% 243,620 29.9%
4th Qtr 312,646 20.4% 348,824 19.4%
</TABLE>
<PAGE> 2
INTIMATE BRANDS, INC.
QUARTERLY FINANCIAL INFORMATION
RESTATED
<TABLE>
<CAPTION>
1998 1999
<S> <C> <C> <C> <C>
Year 897,842 23.1% 1,062,269 23.5%
6 Mos 388,036 23.6% 469,825 24.8%
9 Mos 585,196 24.9% 713,445 26.3%
5. OPERATING INCOME (% OF SALES) (% OF SALES)
1st Qtr 81,018 10.5% 94,694 10.8%
2nd Qtr 128,817 14.7% 155,938 15.3%
3rd Qtr 70,218 9.9% 72,058 8.9%
4th Qtr 390,796 25.5% 470,826 26.1%
Year 670,849 17.3% 793,516 17.6%
6 Mos 209,835 12.8% 250,632 13.2%
9 Mos 280,053 11.9% 322,690 11.9%
6. INTEREST EXPENSE (% OF SALES) (% OF SALES)
1st Qtr 7,563 1.0% 8,864 1.0%
2nd Qtr 7,563 0.9% 7,894 0.8%
3rd Qtr 7,361 1.0% 7,915 1.0%
4th Qtr 7,563 0.5% 7,344 0.4%
Year 30,050 0.8% 32,017 0.7%
6 Mos 15,126 0.9% 16,758 0.9%
9 Mos 22,487 1.0% 24,673 0.9%
7. OTHER INCOME (EXPENSE) (% OF SALES) (% OF SALES)
1st Qtr 4,372 0.6% 1,976 0.2%
2nd Qtr 5,408 0.6% 59 0.0%
3rd Qtr 2,870 0.4% 0 0.0%
4th Qtr 3,750 0.2% 1,370 0.1%
Year 16,400 0.4% 3,405 0.1%
6 Mos 9,780 0.6% 2,035 0.1%
9 Mos 12,650 0.5% 2,035 0.1%
8. PRE-TAX INCOME (PRE-TAX MARGIN) (% OF SALES) (% OF SALES)
1st Qtr 77,827 10.1% 87,806 10.0%
2nd Qtr 126,662 14.5% 148,103 14.6%
3rd Qtr 65,727 9.3% 64,143 7.9%
4th Qtr 386,983 25.3% 464,852 25.8%
</TABLE>
<PAGE> 3
INTIMATE BRANDS, INC.
QUARTERLY FINANCIAL INFORMATION
RESTATED
<TABLE>
<CAPTION>
1998 1999
<S> <C> <C> <C> <C>
Year 657,199 16.9% 764,904 17.0%
6 Mos 204,489 12.4% 235,909 12.4%
9 Mos 270,216 11.5% 300,052 11.1%
9. TAXES (TAX RATE) (TAX RATE)
1st Qtr 31,000 39.8% 35,100 40.0%
2nd Qtr 50,800 40.1% 59,200 40.0%
3rd Qtr 26,200 39.9% 25,700 40.1%
4th Qtr 155,000 40.1% 186,000 40.0%
Year 263,000 40.0% 306,000 40.0%
6 Mos 81,800 40.0% 94,300 40.0%
9 Mos 108,000 40.0% 120,000 40.0%
10. NET INCOME (% OF SALES) (% OF SALES)
1st Qtr 46,827 6.1% 52,706 6.0%
2nd Qtr 75,862 8.7% 88,903 8.7%
3rd Qtr 39,527 5.6% 38,443 4.7%
4th Qtr 231,983 15.2% 278,852 15.5%
Year 394,199 10.1% 458,904 10.2%
6 Mos 122,689 7.5% 141,609 7.5%
9 Mos 162,216 6.9% 180,052 6.6%
11. DILUTED EARNINGS PER SHARE (% INCREASE) (% INCREASE)
1st Qtr $0.18 28.6% $0.21 16.7%
2nd Qtr $0.28 16.7% $0.35 25.0%
3rd Qtr $0.15 15.4% $0.15 0.0%
4th Qtr (Increase Excludes 1997 Cacique Charge) $0.88 23.9% $1.10 25.0%
Year (Increase Excludes 1997 Cacique Charge) $1.49 22.1% $1.81 21.5%
6 Mos $0.46 21.1% $0.56 21.7%
9 Mos $0.61 19.6% $0.71 16.4%
12. WEIGHTED AVERAGE DILUTED SHARES
1st Qtr 267,305 256,753
2nd Qtr 266,751 253,296
3rd Qtr 262,673 252,813
4th Qtr 263,511 252,568
</TABLE>
<PAGE> 4
INTIMATE BRANDS, INC.
QUARTERLY FINANCIAL INFORMATION
RESTATED
<TABLE>
<CAPTION>
1998 1999
<S> <C> <C> <C> <C>
Year 265,060 253,858
6 Mos 267,028 255,025
9 Mos 265,576 254,288
13. BASIC SHARES OUTSTANDING
1st Qtr 265,140 252,604
2nd Qtr 264,663 248,778
3rd Qtr 261,548 249,021
4th Qtr 260,877 249,131
14. DIVIDENDS PER SHARE (% INCREASE) (% INCREASE)
1st Qtr $0.13 7.7% $0.13 0.0%
2nd Qtr $0.13 7.7% $0.13 0.0%
3rd Qtr $0.13 7.7% $0.14 5.3%
4th Qtr $0.13 7.7% $0.14 5.3%
Year $0.53 7.7% $0.55 2.6%
6 Mos $0.27 7.7% $0.27 0.0%
9 Mos $0.40 7.7% $0.41 1.8%
</TABLE>
<PAGE> 1
EXHIBIT 99.11
-------------
<TABLE>
<CAPTION>
INTIMATE BRANDS, INC.
NUMBER OF STORES
AS OF JANUARY 29, 2000 AND JANUARY 30, 1999
January 29, 2000 January 30, 1999
---------------- ----------------
<S> <C> <C>
Victoria's Secret 896 829
Bath & Body Works 1,214 1,061
------------ ------------
Total 2,110 1,890
============ ============
</TABLE>
For Further Information Contact: Debbie Mitchell (614) 415-7546
<PAGE> 1
EXHIBIT 99.12
-------------
INTIMATE BRANCS, INC.
Store/Selling Sq. Ft. Summary - External Reporting
Fiscal 1999
<TABLE>
<CAPTION>
# OF STORES
- ------------------------------------------------------------------------------------------------------------------------------------
VSS w/o Hosiery VSS Hosiery SxS VSS Hosiery Freestand VSB SxS VSB Freestand Total VSS
<S> <C> <C> <C> <C> <C> <C>
1998 786 11 13 417 30 829
1st Qtr. 800 11 15 414 34 849
2nd Qtr. 808 11 15 412 36 859
3rd Qtr. 830 11 15 416 43 888
4th Qtr. 833 11 15 416 48 896
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- -------------------------------------------------------------------------------------------------------------- ------------------
BBW w/o Candle BBW w/Frag & Candle BBW Freestand Candle Total BBW Total IBI
<S> <C> <C> <C> <C> <C>
1998 1,012 46 3 1,061 1,890
1st Qtr. 1,053 45 3 1,101 1,950
2nd Qtr. 1,079 44 3 1,126 1,985
3rd Qtr. 1,112 48 5 1,165 2,053
4th Qtr. 1,140 64 10 1,214 2,110
- ----------------------------------------------------------------------------------------------------- ------------------------
</TABLE>
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