March 15 (Reuters) - Limited Brands Inc's (LTD.N) board approved a $1 special dividend for its shareholders, and said it will buy back $200 million shares, sending the mall-based retailer's shares up 4 percent in trading after the bell. The company said the special dividend would be paid on April 19 to shareholders of record at the close of business on April 5.

Victoria's Secret

The owner of Victoria's Secret and Bath & BodyWorks chains added that the new share repurchase program includes $31 million from the company's previous $250 million stock buyback plan.

The company was hurt by weak mall traffic in the downturn, but beat market expectations during the latest fourth quarter as it improved merchandise, which spurred spending by shoppers, and controlled its inventory and costs.

Shares of Limited Brands rose to $24.67 in after-market trade. They had closed at $23.71 Monday 15 March on the New York Stock Exchange.

For the alerts, double-click (Reporting by Shradhha Sharma in Bangalore; Editing by Jarshad Kakkrakandy)