Victoria’s Secret proprietor L Manufacturers shares soar on raised revenue outlook
Pedestrians wearing protective masks carry shopping bags from Victoria’s Secret Stores LLC in San Francisco, California, United States on Wednesday, February 17, 2021.
David Paul Morris | Bloomberg | Getty Images
Victoria’s secret owner L Brands increased its earnings outlook for the first quarter on Friday, citing a boost from government incentives and eased Covid 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 previous guidance of 55 cents to 65 cents.
L Brands, which also owns Bath & Body Works, said there had been “unusual changes in consumer habits” that had resulted in increased sales.
Nonetheless, it was warned that the retail environment “remains uncertain and there is no guarantee that these improved trends will continue”.
L Brands raised its earnings outlook for the quarter earlier this month, citing strong demand for Bath & Body Works and Victoria’s Secret.
The retailer’s inventory is up nearly 60% since the start of the year. It has a market capitalization of $ 16.6 billion.