Victoria’s Secret-owner L Brands raises first-quarter profit forecast again

A shopper passes by a Victoria's Secret retail store, as the global outbreak of the coronavirus disease (COVID-19) continues, in Brooklyn, New York
FILE PHOTO: A shopper passes by a Victoria's Secret retail store, as the global outbreak of the coronavirus disease (COVID-19) continues, in Brooklyn, New York, U.S., December 8, 2020. REUTERS/Brendan McDermid

March 26, 2021

(Reuters) – L Brands on Friday raised its current-quarter profit forecast for the second time this month as the Victoria’s Secret owner benefits from consumers spending their stimulus checks and relaxation of COVID-19 restrictions.

The U.S. government started delivering $1,400 checks as a $1.9 trillion aid bill was passed by the House of Representatives earlier this month.

The company now expects an adjusted profit of $0.85 to $1.00 per share in the first quarter, compared with its previous forecast of $0.55 to $0.65.

The retailer previously raised its adjusted profit outlook for the quarter on March 12, citing strong demand for Bath & Body Works and Victoria’s Secret.

The Ohio-based company’s shares, which rose about 60% this year, gained 5.3% in premarket trading.

(Reporting by Mehr Bedi in Bengaluru; Editing by Maju Samuel)