COLUMBUS - Shares of Bath & Body Works, Inc. (NYSE: NYSE:BBWI) fell 5.5% as the company's second quarter earnings forecast fell short of Wall Street estimates, overshadowing a better-than-expected performance in the first quarter.
The retailer's guidance indicated a potential decline in the upcoming quarter, sparking investor concerns and driving the stock down.
For the first quarter ended May 4, 2024, Bath & Body Works reported earnings per share (EPS) of $0.38, surpassing the analyst consensus of $0.33. Revenue also slightly exceeded expectations, coming in at $1.38 billion against the forecasted $1.37 billion.
Despite the beat, revenue declined by 0.9% compared to the $1.396 billion reported in the same period last year.
CEO Gina Boswell expressed satisfaction with the company's start to the year, highlighting successful product launches and customer engagement efforts. Boswell also noted the narrowed and raised midpoint guidance for the full year, reflecting the company's confidence in its strategic initiatives.
Looking ahead, Bath & Body Works provided a cautious outlook. For the second quarter of 2024, the company anticipates EPS to be between $0.31 and $0.36, which is below the analyst estimate of $0.39.
The projected net sales for the second quarter also show a potential decline of up to 2% compared to the previous year's $1.559 billion.
For the full fiscal year 2024, the company expects net sales to range from a decline of 2.5% to flat relative to the $7.429 billion reported in fiscal 2023.
The updated EPS guidance for the year is set between $3.05 and $3.35, compared to the prior year's $3.84 and adjusted EPS of $3.27.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.