Bath & Body Works sees strong sales in Q3, raises full-year outlook
Bath & Body Works fiscal third-quarter performance topped analysts' estimates thanks to strong sales, and the retailer boosted its full-year outlook.
The owner of Victoria’s Secret, Bath & Body Works and other chain stores earned $106 million, or 49 cents per share, for the period.
A year earlier the Columbus, Ohio-based company earned $119 million, or 52 cents per share. The prior-year period's results were helped by a $12 million pretax gain related to the early payment of debt.
The performance beat the 46 cents per share that analysts surveyed by Zacks Investment Research predicted.
Revenue totaled $1.61 billion, up 3% from $1.56 billion a year earlier. The results topped Wall Street's forecast of $1.58 billion.
“We are capitalizing on our agile business model and predominantly U.S.-based supply chain, and we believe we are well-positioned to navigate a volatile retail environment and shorter holiday calendar,” CEO Gina Boswell said in a statement. "As we enter the critical holiday period, I am pleased with our strong execution and the momentum we are building, as we drive towards sustainable, long-term profitable growth.”
Neil Saunders, managing director of GlobalData, was pleased that Bath & Body Works saw increased sales both in stores and online during the quarter.
“One of the areas where Bath & Body Works has excelled is in trying to reinvigorate its core product categories,” Saunders said. “There has been a significant amount of innovation around scents, product design, and in-store displays to capture consumer imaginations and drive volume. This includes selective collaborations with franchises like Stranger Things to create limited-time collections which drive both interest and urgency when it comes to consumer purchases.”
Going forward, Bath & Body Works now anticipates fiscal 2024 adjusted earnings in a range of $3.15 to $3.28 per share and revenue between a decline of 2.5% to a decline of 1.7%, relative to $7.43 billion in fiscal 2023. The company previously forecast adjusted earnings between $3.06 and $3.26 per share and revenue to range between a decline of 4% to a decline of 2%.
Analysts polled by FactSet expect full-year earnings of $3.20 per share.
Shares jumped more than 19% before the market open on Monday.
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