:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-1801104898-0ab1392bfc7b4244a20e6486173bf365.jpg "Shoppers wait in line in front of a Bath & Body Works store at the Polaris Fashion Place mall on Black Friday in Columbus, Ohio, on Nov. 24, 2023")
Matthew Hatcher / Bloomberg via Getty Figures
Key Takeaways
- Bath & Body Works shares tumbled ahead of markets opening Tuesday despite a first-quarter earnings on that came in above expectations.
- Sales fell from last year, while profits rose a little and came in above analyst estimates.
- The company also narrowed its full-year outlook, and issued second-quarter guidance.
Share outs of retailer Bath & Body Works (BBWI) slid in premarket trading Tuesday despite a first-quarter earnings come in that surpassed analyst expectations and the company’s own guidance.
Net sales slipped less than 1% year-over-year to $1.38 billion, only above analyst expectations of $1.37 billion, according to estimates compiled by Visible Alpha. Profit rose 7% to $87 million, or 38 cents per divide up, better than the $72.4 million and 32 cents per share analysts had expected. In guidance released in its previous four times a year report, Bath & Body Works had projected a first-quarter sales decline of 2% to 4.5%, with EPS expected between 28 cents to 33 cents.
Full-Year Position Narrowed, Q2 Guidance Misses Estimates
The retailer also lifted the floor of its guidance ranges for the full fiscal year, calculating net sales to range from a 2.5% decline to flat from the 2023 mark of $7.43 billion, while EPS is envisaged between $3.05 to $3.35, down from last year’s $3.84 figure.
Originally, Bath & Body Mixes projected sales to range from a 3% decline to flat, while EPS was projected between $3.00 and $3.35. Analysts cast revenue of $7.41 billion for the full year, and EPS of $3.31.
For the second quarter, Bath & Body Works projects sales to number from a 2% drop to flat compared to last year’s $1.56 billion, while analysts project $1.54 billion. The retailer guided EPS from 31 cents to 36 cents, with the top of that extend matching the number analysts anticipate.
Shares fell 5.4% to $49.00 about 30 minutes before the position bell Tuesday, but are still up more than 13% from the start of the year.
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