Retailer Limited Brands Inc.’s net income more than tripled in the third quarter despite lower sales due in part to better cost and inventory management. After adjusting for an income tax benefit the profit was up 46 percent, topping Wall Street's expectations.

The Columbus, Ohio-based retailer, which operates several chains including The Limited, Victoria’s Secret, C.O. Bigelow and Bath & Body Works, reported net income of $14.9 million, or 5 cents per diluted share, in the quarter ended Oct. 31, up from $4.2 million, or 1 cent per diluted share, in the year-earlier period. Adjusted net income was $6.1 million, or 2 cents per diluted share. The consensus earnings estimate compiled by Zacks Investment Research Inc. was a loss of 2 cents per diluted share.

Sales decreased 3.5 percent to $1.78 billion from $1.84 billion in the year-ago period. Same-store sales declined 2 percent. While possibly hurting the top line, the company announced in a conference call plans to have fewer promotions in order to enhance the brand.

“On one hand, they don’t have to mark down as much at the end of season from having less inventory,” said Morningstar Inc. analyst Zoe Tan. “Last year we saw a lot of promotions and that was bad for consumer perception of brand name.”

In a teleconference, the company stated it expects fourth quarter earnings to be between 71 cents and 86 cents per diluted share, as compared with a Zacks consensus estimate of 79 cents per diluted share. Limited Brands fourth quarter earnings last year were 5 cents per diluted share after impairments and other adjustments that reduced earnings by 63 cents per share. 

Full year adjusted earnings was forecast to be between 93 cents and $1.08 per diluted share, up from 65 cents per diluted share in its previous fiscal year. In a Zacks poll of 16 analysts, the consensus earnings estimate for the full year is 97 cents per diluted share. The company expects both fourth quarter and the full year comparable-store sales to be down, by low- to mid-single digits and mid-single digits, respectively.

For the 39 weeks ended Oct. 31, net income declined 54.2 percent to $91.8 million, or 28 cents per diluted share, from $200.3 million, or 60 cents per diluted share, in the year-earlier period. Sales decreased 8 percent to $5.57 billion from $6.05 billion.

The stock closed Thursday down 59 cents at $17.68, in a general market decline.