Bath & Body Works beat Wall Street forecasts in its first quarter, but the retailer’s full year guidance fell short of expectations.
The company reported net sales of $1.38 billion for the quarter ended May 4, a decrease of 0.9 percent compared to $1.39 billion for the same period last year. Wall Street had expected $1.37 billion.
Adjusted earnings per diluted share increased 15 percent to 38 cents compared to 33 cents last year, and net income was $87 million, up from $76 million. Analysts had forecast 33 cents.
For fiscal 2024, Bath & Body Works narrowed its guidance by raising the midpoint for both the top and bottom lines and is now forecasting net sales to range between a decline of 2.5 percent to flat. Full-year 2024 earnings per diluted share is now expected to be between $3.05 and $3.35.
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The revised sent the company’s share price falling almost 9 percent in pre-market trading.
Gina Boswell, chief executive officer of Bath & Body Works, said” “We delivered a better-than-expected start to the year with net sales and earnings per share above the high-end of our guidance range. We are particularly excited with the success of our product introductions and newness, which drove the performance of both our core business and new adjacencies. Our focus on building strong brand awareness and engagement is delivering greater customer retention and loyalty. With our strong start to the year, we are pleased to narrow our full-year guidance range while raising the midpoint for both the top- and bottom-lines. I am proud of the way our team is executing on our strategic initiatives, and looking ahead, we remain confident in our ability to deliver long-term profitable growth.”
