By Bath & Body Works, the renowned fragrance and body-products company, has provided an update on its annual earnings guidance while narrowing its sales outlook for 2023. Despite an anticipated decline in sales, the company has raised its expectations for annual earnings. Let’s delve into the details.
Sales Forecast for 2023
Bath & Body Works now projects a decline in sales ranging from 1.5% to 3.5% for the year 2023. This revision narrows the previous forecast, which had indicated flat sales or a drop in the mid-single digits. Although the updated outlook hints at a challenging sales landscape, the company remains optimistic about its future prospects.
Revised Annual Earnings Expectations
The fragrance and body-products giant expects its annual earnings per share (EPS) to amount to $2.85 to $3.15. This updated guidance surpasses the previous range of $2.70 to $3.10 a share. However, it falls short of the $3.40 per share achieved in 2022. When adjusting for the gain on an early extinguishment of debt, the projected adjusted earnings for 2023 are estimated at $2.80 to $3.10 per share. Analysts, on the other hand, expect the adjusted EPS to be around $3.04 per share, according to FactSet.
Third-Quarter Projections
Looking specifically at the third quarter, Bath & Body Works foresees a decline in sales of 2.5% to 4% compared to the same period last year when it reported $1.6 billion in revenue. Additionally, the company expects third-quarter earnings to range from 30 cents to 40 cents per share, a slight decrease from the 40 cents per share recorded in the previous year.
Market Reaction
The market responded to the updates, with shares of Bath & Body Works experiencing a 6.1% decrease in premarket trading, reaching $32.80.
Dean Seal contributed to this report.
Note: Contact details for Dean Seal have been omitted as per the provided instructions.
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