L Brands, which owns the famous Victoria’s Secret label, has raised its current quarter earnings expectations for the second time this month, after benefiting from consumer spending for their financial incentives and the easing of restrictions related to the Covid-19 epidemic crisis.
The US government started giving checks worth $1,400 after the House of Representatives passed a $1.9 trillion aid bill earlier this month.
The company currently expects its adjusted profits in the first quarter to range between $0.85-$1 per share, while its previous expectations, which it released on the 12th of this month, ranged between $0.55-0.65, indicating at the time the increased demand for its brands such as Victoria’s Secret and Bath & Body Works was increasing.
L Brands stated that it witnessed an unusual shift in consumer spending patterns, which in turn led to sales volatility, although the company warned that the business environment is still unstable and inevitable and that there is no guarantee that consumer trends will continue.
According to the stock market, L Brands shares gained 5.3% in pre-market trading, knowing that its shares have increased by 60% during this year, and the company’s market capitalization is currently at $16.6 billion.