Pedestrians wearing protective masks will carry Victoria’s Secret Stores LLC shopping bags on Wednesday, February 17, 2021 in San Francisco, California, USA.
David Paul Morris | Bloomberg | Getty images
Victoria’s Secret owner L Brands raised its first-quarter earnings outlook on Friday, citing a boost from government stimulus and easing Covid-related restrictions.
The stock rose more than 5.5% in early trading.
The company now expects adjusted earnings of 85 cents to $ 1 per share, compared to its earlier forecast of 55 cents to 65 cents.
L Brands, which also owns Bath & Body Works, said it has seen “unusual shifts in consumer spending patterns” leading to higher sales.
Still, it warned 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 for Bath & Body Works and Victoria’s Secret.
The retailer’s stock is up nearly 60% to date. It has a market capitalization of $ 16.6 billion.