Pedestrians walk past a Victoria’s Secret store, a subsidiary of L Brands, in New York.
Craig Warga | Bloomberg | Getty Images
L Brands shares shot up nearly 7% in premarket trading Friday after the company hiked its profit outlook for the current quarter, and said it would be reinstating an annual dividend, paying down debt and buying back shares.
L Brands said in the press release that it plans to repay $1.03 billion of debt using $1.1 billion of cash on hand. The company also announced a fresh $500 million share buyback plan to replace its existing program, which has $79 million remaining on it.
L Brands, which owns the Victoria’s Secret lingerie brand as well as Bath & Body Works, also…