Full Year Results: Earnings per share for the 52-week year ended Feb. 2, 2008, were $1.89 compared to $1.68 for the 53 weeks ended Feb. 3, 2007. Operating income was $1.110 billion compared to $1.176 billion last year, and net income was $718.0 million compared to $675.0 million last year.
The 2007 results contain certain significant items, including: • A second quarter pre-tax gain of $302 million related to the divestiture of a 75% interest in Express to affiliates of Golden Gate Capital; • A second quarter pre-tax loss of $73 million related to the divestiture of a 75% interest in Limited Stores to affiliates of Sun Capital Partners; • A second quarter tax benefit of $39 million related to an adjustment to state net operating loss valuation allowances in connection with the divestiture of the apparel brands; • A second quarter pre-tax gain of $100 million related to the refinancing of Easton Town Center, in which the company has an investment interest, included in other income; • A second quarter pre-tax restructuring charge of $47 million for costs of disposing of non-core assets and severance related to the termination of approximately 10% of the company's home office headcount; • A second quarter pre-tax gain of $17 million related to an interest rate hedge entered into in the first quarter in anticipation of the intended financing of the LaSenza acquisition, included in other income; • A third quarter pre-tax gain of $24.5 million related to asset sales; • A fourth quarter pre-tax gain of $47.8 million related to the recognition of initial gift card breakage at Victoria's Secret; and • A fourth quarter tax benefit of $28 million related to a decline in the Canadian federal tax rate, the finalization of income taxes related to the Express and Limited Stores divestitures, audit settlements and other items.
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