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Investing.com — Some people used their stimmies to pay off student loans, others credit card debt. And then there are those who freshened up their underwear drawers and scented soap collections.
L Brands (NYSE:LB) rose more than 6% Friday after increasing its quarterly earnings guidance by almost double in the best case scenario. This from a company that was clinging to life just a year ago. The company said in a statement it is now forecasting first quarter earnings per share range of 85 cents to $1.00 versus its previous range of 55 cents to 65 cents.
“L Brands today is increasing its first quarter earnings guidance due to improved sales trends which the company 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 company said.
And it’s not just the scented candles and moisturizer that have helped carry to company through the pandemic. Both Bath & Body Works and Victoria’s Secret are having a strong quarter. Shares have rallied about 450% since March as the company implemented a turnaround, shutting stores and slimming down the workforce. It plans to spin off Victoria’s Secret later this year.
Of course, L Brands notes the environment remains uncertain, and there is no assurance that these improved trends will continue.
