‘Fashion Recession’ Over, Limited Inc. Says; Profits Surge

The Limited Inc., the nation’s largest women’s apparel retailer, today reported a surge in fourth-quarter profit and its fashion guru chairman declared an end to the “fashion recession” that had hurt earnings since late 1987.

For the quarter ended Jan. 31, sales jumped 34.2% to $1.36 billion, leading to an 89.9% jump in net income to $120.1 million.

The year’s results showed less improvement, with earnings edging up just 4.7%.

Limited Chairman Leslie Wexner said the company remains “conservative and cautious” in its store inventories.

“I believe that May, 1988, was the pivotal month in what can be called, in retrospect, a women’s apparel recession which began in the fall of 1987” with a rebellion against the miniskirt, he said.