Pedestrians wearing protective masks carry shopping bags from Victoria’s Secret Stores LLC in San Francisco, California, USA, on Wednesday, February 17, 2021.
David Paul Morris | Bloomberg | Getty Images
L Brands, owner of Victoria’s Secret, on Friday boosted its earnings forecasts for the first quarter, citing a boost from government stimulus and Covid-related restrictions.
Its shares jumped more than 6% in premarket trading.
The company now expects an adjusted profit of 85 cents to $ 1 per share, compared to its previous forecast of 55 cents to 65 cents.
L Brands, who also owns Bath & Body Works, said it has seen “unusual changes in consumer spending patterns,” which have led to increased sales.
However, he warned in his press release that the retail environment “remains uncertain and that there is no guarantee that these improved trends will continue.”
Brands had already raised its earnings forecasts for the quarter earlier this month, citing strong demand from both Bath & Body Works and Victoria’s Secret.
The retailer’s shares have risen nearly 60% so far. It has a market capitalization of $ 16.6 billion.