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 a 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.

The company, which owns the Victoria's Secret lingerie brand as well as Bath & Body Works, also said it will reinstate its annual dividend of 60 cents per share, beginning with a quarterly dividend paid in June.

Building on the momentum it saw over the holidays, L Brands now forecasts first-quarter earnings per share to fall within a range of 55 cents to 65 cents, up from a prior range of 35 cents to 45 cents.

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