L Brands increases first quarter guidance again
L Brands, the parent company of Victoria’s Secret and Bath & Body Works, announced on Friday that it was increasing its first quarter earnings guidance for a second time this month, due to improved sales trends.
The company is now forecasting a first quarter earnings per share range of $0.85 to $1.00 versus its previous range of $0.55 to $0.65, which was updated earlier this month from a range of $0.35 to $0.45.
L Brands said it has seen “unusual shifts in consumer spending patterns, resulting from government stimulus payments, a relaxation of Covid-19 restrictions and other factors.”
Still, the company cautioned in a press release that “the environment remains uncertain, and there is no assurance that these improved trends will continue.”
Last month, L Brands reported fourth-quarter income of $860.3 million, or $3.03 per share, a significant improvement when compared to the net loss of $192.3 million, or $0.70 per share, posted by the company in the same period last year.
L Brands is working on plans to split Victoria’s Secret and Bath & Body Works into two separate, standalone companies. The process is expected to be complete by August.
The company currently operates 2,669 company-operated specialty stores in the United States, Canada and Greater China, in more than 700 franchised locations worldwide and through its websites worldwide.
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