Mae Anderson, THE ASSOCIATED PRESS

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NEW YORK - Specialty apparel maker Limited Brands Inc. said Wednesday that its profit fell by more than half in the second quarter amid a difficult retail environment, but results beat expectations as the company kept a tight rein on its inventory and expenses.

Shares rose $1.09, or 6.1 per cent, to US$18.90 during aftermarket electronic trading, after closing at $17.97.

The Columbus, Ohio-based company, which operates Bath & Body Works and Victoria's Secret, said profit for the three months ended Aug. 2 fell 61 per cent to $102 million, or 30 cents per share, from $264.4 million, or 67 cents per share last year. Excluding one-time items, net income came to 27 cents per share.

Revenue fell 13 per cent to $2.28 billion from $2.62 billion.

Analysts polled by Thomson Reuters expected a profit of 20 cents per share on revenue of $2.31 billion. Analyst estimates typically exclude one-time items.

Sales in stores open at least one year, a key retail metric known as same-store sales, fell seven per cent.

The company credited the results to tight management of inventory and expenses.

"Although we expect that the environment will continue to remain challenging, we will continue to conservatively manage the financial aspects of the business while at the same time provide compelling assortments and exciting store experiences to build our brands," said Leslie Wexner, chairman and chief executive, in a statement.

The company predicts third-quarter results from break-even to earnings of four cents per share, excluding one-time items, while analysts expect four cents per share.

For the year the company expects earnings of $1.45 to $1.60 per share, excluding one-time items, while analysts expect $1.48 per share.