L Brands, Inc. is now forecasting a first quarter earnings per share range of 85 cents to 1 dollar versus its previous range of 55 cents to 65 cents, excluding any charges related to the early extinguishment of debt.
The company said in a statement that raise in guidance is due to improved sales trends which it believes are primarily driven by unusual shifts in consumer spending patterns, resulting from government stimulus payments, a relaxation of Covid-19 restrictions and other factors.
The above factors, the company added, led to a stronger first quarter forecast at both Bath & Body Works and Victoria’s Secret. However, the company further said that the environment remains uncertain and there is no assurance that these improved trends will continue.
Image: L Brands resources