Bath & Body Works, the well-known retailer of body products and fragrant candles, has announced its second fiscal quarter results for 2022. While the company’s earnings surpassed analyst expectations, its stock has taken a hit due to revised guidance falling short at the midpoint.
According to FactSet, Bath & Body Works reported adjusted earnings of 40 cents per share, surpassing analyst forecasts of 33 cents. The company’s revenue stood at $1.56 billion, meeting expectations.
Looking ahead, Bath & Body Works (ticker: BBWI) anticipates full-year adjusted earnings per diluted share to range between $2.80 and $3.10. This is a slight adjustment from its previous prediction of $2.70 to $3.10 per share. However, at the midpoint of $2.95 per share, this guidance falls below the analyst consensus of $3.04 per share.
In addition, the company foresees a decline in sales for 2023, with a projected range of 1.5% to 3.5% compared to the $7.56 billion reported in 2022. This differs from their earlier forecast of flat to mid-single-digit sales decline.
As a result of this news, Bath & Body Works’ stock experienced a premarket trading drop of 3.7% to $33.65.
This update showcases Bath & Body Works’ strong financial performance but indicates concerns for the company’s future growth as they navigate changing market dynamics.