Update: Limited Brands announced it will sell a majority stake in its Express unit - 67% to Golden Gate Capital. It is also exploring strategic options for Limited stores. Third, LTD has cut its Q1 earnings per share guidance from 25 cents to 28 cents to 12 cents to 14 cents.
Trade in Limited Brands may have been halted this afternoon, but when it resumes expect it move, Cramer told Erin Burnett today on their regular Stop Trading! segment. “I think you’re going to see $30,” he said. Chairman and CEO Leslie Wexner has a long history of creating successful brands such as Abercrombie & Fitch and Tween, and he likes to work, so Cramer doubts the news holding the stock has to do with a private equity sale. It’s more likely that one of LTD’s many businesses is being spun off, he said.