L Brands, the American fashion brand, has increased its guidance for Q1.
While confirming the same in a statement released to media, the US-based retailer said that there was a shift in consumer spending patterns, which it owed largely to relaxation in pandemic restrictions.
The retailer also attributed shift in consumer spending to Government stimulus payments to households.
This has also enhanced the performance of retailer’s brands such as Victoria’s Secret and Bath & Body Works.
L Brands has predicted its earnings per share to touch anywhere between 85 cents to US $ 1 for the first quarter – up from the previous guidance of 55 to 65 cents per share.
The retailer has said that environment is still uncertain with no assurance of these improved trends to continue.
After a struggling 2020, the year ended positively for the retailer with Q4 generating profitable net income of US $ 860.3 million with comparable sales rising by 10 per cent.
2021 hopefully should be better than 2020 with vaccine rollout picking up pace and restrictions eased at several places. And now with changes in company’s board, one could see the retailer return to the glorious days of profitability – soon.
L Brands generated US $ 12.914 billion in 2019.
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