"Finally someone stopped being conservative in the annual report business," said Sid Cato, an annual report guru who combs through the estimated 13,000 reports produced each year in the US.

A swath of stocking, a patch of fragrance, a sample of lipstick, and, of course, shots of vixens dress up the 52-page Intimate Brands' booklet that is hitting investor mailboxes.

A CD-ROM of the company's Victoria's Secret fashion show, which last February aired live on the Internet, adds a high-tech edge to good, old-fashioned sex appeal.Intimate Brands, best known for its upscale bras, panties and nighties sold under the Victoria's Secret brand name, knows first hand that sex sells.

The Columbus, Ohio-based company, which also sell personal-care products under the Bath & Body Works brand, has left a solid trailof earnings and revenue increases. Intimate Brands' stock has rocketed to about $54 this month, roughly double its year-ago level.

On the heels of such a flashy performance, Intimate Brands has forgone more formal annual reports to slip in something a bit more comfortable.

"We portrayed the brands as they are portrayed every day and that is the code we go by regardless of the vehicle we are using," said Debbie Mitchell, vice president of investor relations and communications at Intimate Brands. "That code is be true to your brands.

"Cato notes the 1998 report not only features product samples and sultry pictures, but offers a straightforward analysis of the company's financial performance as well. The report details the firm's robust financial results as well an outlook that calls for up to 12 per cent sales growth and about an 18 per cent earnings jump this year.

Chairman and chief executive officer Leslie Wexner writes an informative, but informal, shareholder letter: "The brand did have a very goodyear. But I honestly believe that much of its growth is still ahead of it. Mature? Past its peak? No way." The annual report also introduces the White Barn Candle Co, a new business that sells candles and home fragrance products, and offers investors a coupon for a free candle.

But peppering the requisite corporate information, of course, are full-page shots of a women's leg clad in lacy stocking and high-heeled pump, model Tyra Banks donning satin lavender undies and yet another beauty showing just how good Victoria's Secret cosmetics can look.

Cato admits he had some reservations at first, but now regards the report as a breakthrough creation. He said the annual report passed his 135-point litmus test, based on 15 standards he actually copyrighted, with flying colours, scoring a hefty 100 points. "I was pleasantly surprised, because I really do have some reservations about exposing a lot of the female form," he said. "But I think the annual report is really quite outstanding. I have evaluated it, andit's what we call world-class." Mitchell said Intimate Brands only paid $3 more per booklet as compared to the 1997 report and printed roughly 80,000 copies.

"We look at this as a tool not only for current and potential investors," she said. "We look at it as a tool to attract customers, so we see it as a multi-task vehicle not only a reporting document."

Although the report offers a little something for both male and female investors, Mitchell says one aspect in particular makes her heart race."

The earnings," she said. "The earnings track record."