Bath & Body Works exceeded analysts’ expectations during its fiscal third quarter, driven by robust sales performance, prompting the retailer to raise its full-year projections.
The company reported a profit of $106 million, translating to 49 cents per share. This marked a decline from the previous year’s earnings of $119 million, or 52 cents per share, which had benefitted from a $12 million pre-tax gain due to early debt repayment.
The recent results surpassed the anticipated 46 cents per share predicted by analysts via Zacks Investment Research.
In terms of revenue, Bath & Body Works recorded $1.61 billion, a 3% increase from $1.56 billion in the same quarter last year, eclipsing Wall Street’s expectation of $1.58 billion.
CEO Gina Boswell acknowledged the company’s ability to leverage its flexible business model and predominantly U.S.-based supply chain, stating that they are well-equipped to handle a fluctuating retail climate and the condensed holiday shopping season. She expressed satisfaction with their operational execution and momentum as they aim for sustainable, long-term growth as the holiday period approaches.
Neil Saunders, managing director of GlobalData, highlighted the success of Bath & Body Works in increasing both in-store and online sales over the quarter.
Saunders emphasized that the company has been revitalizing its core product lines, showcasing innovative advancements in scents, product design, and in-store merchandising to engage consumers and boost sales. He noted successful collaborations, like the partnership with the franchise “Stranger Things,” which introduced limited-time collections that generate excitement and urgency among customers.
Looking ahead, Bath & Body Works has revised its fiscal 2024 forecasts, now predicting adjusted earnings to range between $3.15 and $3.28 per share, with revenue expected to decline between 2.5% and 1.7% from the previous fiscal year’s $7.43 billion. Earlier estimates had projected adjusted earnings between $3.06 and $3.26 per share, with revenue forecasted to decline between 4% and 2%. Analysts from FactSet are anticipating full-year earnings of $3.20 per share.
On Monday, shares of Bath & Body Works saw a significant increase, rising more than 19% before the market opened.