Pedestrians wearing protective masks carry shopping bags from Victoria’s Secret Stores LLC in San Francisco, California, U.S., on Wednesday, February 17, 2021.
David Paul Morris | Bloomberg | fake images
Victoria’s Secret owner L Brands raised its earnings outlook for the first quarter on Friday, citing a boost from government stimulus and easing of Covid-related restrictions.
Its shares rose more than 5.5% in early trading.
The company now expects an adjusted profit of 85 cents to $ 1 a share, compared to its previous forecast of 55 cents to 65 cents.
L Brands, which also owns Bath & Body Works, said it has seen “unusual changes in consumer spending patterns,” leading to increased sales.
Still, he cautioned that the retail environment “remains uncertain and there is no guarantee that these improved trends will continue.”
L Brands already raised its earnings outlook for the quarter earlier this month, citing strong demand from Bath & Body Works and Victoria’s Secret.
The retailer’s stocks have risen nearly 60% so far this year. It has a market capitalization of $ 16.6 billion.