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
Victoria’s Secret owner, L Brands, raised its profit outlook for the first quarter on Friday, citing a boost from government stimulus and easing of Covid-related restrictions.
Its shares jumped more than 5.5% at the beginning of the trading session.
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 he saw “unusual changes in consumer spending patterns”, which led to increased sales.
Still, he warned that the retail environment “remains uncertain and there is no guarantee that these improving trends will continue.”
AL Brands has already increased its profit outlook for the quarter earlier this month, citing strong demand for Bath & Body Works and Victoria’s Secret.
The retailer’s stock increased by almost 60% year-to-date. It has a market capitalization of $ 16.6 billion.