Thursday, April 15, 2010

Limited Brands Conflicting Messages

Limited Brands (LTD) has a few messages contradicting each other. Limited Brands owns Victoria’s Secrets and recently bought Montreal based La Senza for some C$ 710 million. Dow Jones Newswires reports that they are opening up a new unit in Montreal that will

“support all Limited Brands retail stores and strategic expansion in Canada, including La Senza, Bath and Body Works, Victoria's Secret Pink and Victoria's Secret, which is launching later this year.”

Joanne Nemeroff has been named president of the new unit

The Globe and Mail carried a Canadian Press Newswire story stating that Limited Brands is looking to move 50 creative and merchandising jobs from Montreal to its main office in Ohio.

“It is about pooling all of resources together in one place and being able to attract the best possible talent,” said Martin Waters, president of international for Limited Brands.

The messages obviously conflict and you have to wonder if Limited Brands knows what it is doing. By the way concentrating creative resources is a good idea. The head office is in Columbus Ohio which is not as sexy as Montreal. But wait; when you check the web site Limited Brands also has significant offices in New York. 1114 Ave of the America’s 24th floor if you were wondering. So if you are really good at creative and merchandising type of work do you want to live in Columbus Ohio?

So where are the resources really going and will they manage cost effectively? Will this be another creative driven venture with poor cost controls?

Disclosure: No position in this stock