L Brands Shares Rise on Raised Forecast, Reinstated Dividend
(Bloomberg) -- L Brands Inc.’s shares surged after the U.S. retailer reinstated its dividend and raised its first-quarter earnings forecast, signaling an improving outlook ahead of a separation of its Victoria’s Secret business.
The company, which also owns Bath & Body Works, restored an annual dividend of 60 cents a share, effective in June, according to a statement Friday. It raised its guidance for first-quarter earnings to a range of 55 cents to 65 cents a share, from the previous forecast of 35 cents to 45 cents. Analysts were looking for 37 cents, according to data compiled by Bloomberg.
L Brands has said it plans to sell or spin off Victoria’s Secret by August, separating its beleaguered lingerie chain from the growing Bath & Body Works business.
Columbus, Ohio-based L Brands also announced a plan to repay $1.035 billion in debt and created a new $500 million share-buyback program.
The shares climbed 7.1% at 9:37 a.m. in New York. The stock was up 50% this year through Thursday’s close and surged 105% last year.
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