Bath & Body Works shares fall after profit and sales warning

Bath & Body Works Inc. BBWI,
-3.88%
Shares fell 8.7% premarket on Wednesday after the retailer issued a downward revision to its second-quarter and full-year guidance. Bath & Body Works, known for its scented lotions and candles, now expects second-quarter sales to be down 6% to 7% from previous forecasts of a single-digit percentage decline. one year to the next. Second-quarter earnings per share are now expected to be 40 cents to 42 cents from the previous guidance of 60 cents to 65 cents. The FactSet consensus is for sales of $1.705 billion, suggesting a sales result in line with last year, and EPS of 60 cents. For the year, the company expects sales to be down mid-to-high digits compared to previous guidance of a low-single digit decline. The FactSet consensus predicts sales of $7.947 billion, implying a decline of 0.8%. The full-year operating profit rate as a percentage of sales is expected to be in the mid-1920s. “Our business continues to operate at significantly higher levels than before the pandemic, although we navigate an operating environment and macroeconomic challenges with inflationary pressure affecting our customers and our business,” Chief Executive Sarah Nash said in a statement. Bath & Body Works was formerly part of L Brands alongside Victoria’s Secret VSCO,
-0.29%.
Shares of Bath & Body Works have fallen almost 57% since the start of the year.

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