Bath & Body Works stock slides on annual sales forecast cut

Bath & Body Works (NYSE:BBWI ) reported mixed results for the second quarter and raised earnings guidance for the full fiscal 2024.

The specialty retail company posted Q2 earnings per share (EPS) of $0.37, just ahead of consensus expectations of $0.36. The company’s revenue for the quarter reached $1.5 billion, falling short of the consensus estimate of $1.55 billion.

In the U.S. and Canada, store sales amounted to $1.14 billion, just below the projected $1.15 billion. Direct sales in these regions came in at $297 million, missing the $320 million estimate.

Operating income for the quarter was $183 million, a 2.7% year-over-year decline, but still above the $173.9 million estimate.

BBWI shares traded marginally higher in premarket trading on Wednesday.

For fiscal 2024, Bath & Body Works has revised its guidance, now expecting EPS between $3.37 and $3.57, up from the previous forecast of $3.05 to $3.35. Analysts had estimated an EPS of $3.25.

The company now anticipates full-year adjusted earnings per diluted share to be between $3.06 and $3.26, compared to $3.27 in fiscal 2023.

For full-year net sales, BBWI projects a decline of 4% to 2% relative to the $7.43 billion in net sales recorded in fiscal 2023.

The company said its guidance includes the impact of $400 million in cash allocated for share repurchases, an increase from the previously expected $300 million.

For the third quarter, Bath & Body Works expects EPS to range between $0.41 and $0.47, below analysts' estimate of $0.52. The company also projects Q3 2024 net sales to range from flat to a 2.5% increase, compared to $1.56 billion in the third quarter of 2023.

Source: Investing.com